Except for damage control as short term exercise, India need not do anything as India's capacity is very low with its share in world trade at merely less than 1% in comity of about 180 countries out of which 50 are just dot sized. So India can hardly do anything. The foolish manner in which interest rates were rapidly decreased and money got transfered to rich people and corporates and banks and huge escalation in commodity and goods prices and property prices at the moment show Indian planners don't have any control or capability. Lesser they act ,the better for country and society. Economic and market forces will slowly restore eqquilibrium in the exchange rate.India should generate demand for rupees rather than trying to curtail supply of dollars.Got it? We always try to modify others and government thinks they have prime burden on their heads to supervise business and industry and regulate it by some means.if nothing is left they start taxing everything.That is what PC is doing and it will be another disaster after Man Mohan's big failure.Both should leave offices. I even doubt the growth rate figures churned out by indian government which are as (un)realistic as Consumer prices shown by media and there appears to be some statistical error or jugglery that needs deeper insight by real experts.
