RE:Foreign Exchange Reserve
by ASHOK on Apr 17, 2007 06:53 PM
I think you are wrong about saying stupid to the auther.
Great sell out was during Chandersheker Govt, perhaps Mohan Dharia was finance Minister.
Trend was reversed by Manmohan Singh as Finace minister in Narsimha Rao Govt.
Check back History if I am wrong. Also it has taken us 10 years to pile up first 100 Billion Dollar and next 100 Billion has come in 3 years 3 month. As such it is not a great amount, but it is not small enough to be left unattended. Author has done a good Job of accumulating the facts so far.
Much more than this amount is lying in US dollar for China / Japan & USSR
I believe India should not waste time any further and take decision to have couple of Nuclear plants,that to on turnkey as soon as Nuclear issue is resolved. Go far Better Roads. Encourage Indian Bussiness to buy more assets abroad. Consolidate India's postion in Industry outside India. Why should we send iron ore to China, if Tata can process it in Corus and employ more Indians abroad.
Or else Buy Running Oil platforms and start shipping more Crude to Indian shores.
10% stake in Sakhalin oil is not enough!So far Well Done India.
Accumulate another 100 Billion in 2 years now.
As we know india's Net import is higher than Net export of MANUFACTURED goods. But even than we pile up reserves as Indians are worlds largest Foreign exchange senders back home. Also All this service Industry in India, BPO / KPO etc does not contribute to actual physical manufacture. But with the money earned through this route goes into individuals hands and they want to spend it for improving their life style. That is where Indian system is worried, if they bring a part of this 200 Billion back home than they will have to circulate more INDIAN Rupees and that means more strain on Indian manufacturing sector. which is STILL not matching Indian Imports. Well solutions exists. We should not worry much, we know when elections are declared lot of black Money comes out and system takes the load.
