The
efforts of the government to check inflation do not seem to
be bearing fruit. On the contrary the strict currency policy
of Reserve Bank of India, with a view to bring down inflation,
has played an important role to slow down industrial development.
According to Federation of Indian Chambers of Commerce and
Industries (FICCI), due to the strict policies by the Reserve
Bank of India the industrial development growth registered
slow down and this fall was registered after March 2007 when
it reduced from 14.8 to 3 per cent in March 2008. Increasing
rate of interest and inflation have become hurdles in industrial
development. The country remained back in export targets by
up to 5 billion dollars in the year 2007-08. It can be said
clearly that increase in rate of interest has become business
of loss in place of profit because inflation has not been
controlled and money returned to banks speedily. As a result
stock market is registering continuous fall. Banks have ample
amount and due to the economic policy additional money continues
to come in banks. Reserve Bank of India somehow is drawing
money from market. Tendency of consumer is becoming weak who
is the main element of speeding the market. Whereas, lack
of development rate has brought loss to all. So inflation
should not be a hurdle in development. Price fall in petro
products is unlikely. But it is necessary that to lessen the
price of petro products there is need to lessen its consumption.
Control over price rise is demand of the day. On the other
hand there is need to consider over import-export policy.
Whatever we import its payment is made in dollars. In comparison
to rupee if the dollar is dearer then it is not in favour
of us. So during import the payment should be made in rupee
and or export there should be encouragement of dollar. Reserve
bank should review economic policy and accordingly should
adopt liberal attitude. To maintain development rate there
is need to cut rate of interest. Measures should be sought
to maintain balance between rise of inflation and slowdown
of development rate.
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