I know this is wrong thread but this is thread with most visitors, so i am creating here only.
In last few days, value of rupees to dollar has touched to 70 rupees. so next question is why this is happening?
The most obvious answers are inefficient government, corruptions etc. these can be prevented and may long term solution for improving Indian economy, but i will not discuss and cry over this things. i will talk about measures that every indian can fallow to improve our economy
First, why rupees rate is falling,during browsing this is best explanation i come across,
1) for purchasing oil from arab countries, USA print dollers on white papers and give it as a debt. actually doller has no gold value
2) USA has made pact with oil countries that oil can only be sold for dollar as currency.
3) if other counties want to purchase oil they first buy dollar from USA buy selling there currency at certain value. for other countries the value is measured in terms for purchasing power of gold. and it simply means that Rs 100 always equals certain wt of gold.
4) now after using oil,totally india gets dollars and rupees combined through export and import.
5) india uses dollars to purchase oil again but some dollars are already converted into rupees (which is not loss since rupees means equivalent amount of gold)
6) problem arises now that USA is not bound to buy rupees back and expect there borrowed and useless currancy back. so they increase value of dollar due to increased demand (just like our share market) this small increase is multiplied by fact that oil companies and industries in india has to use dealers in between to purchase oil to maintain supply. dealers further sell dollars they have at higher prices, and fall of currency continues till country has ability to equalize there dollar in = dollar out
Such leak in dollar can simply be prevented by decreasing direct export of dollars from countries
i beg my fellow desidimers to follow simple procedures given below (easy to prevent for dimers only
1) avoid buying unnecessary electronics items. stop upgrading your mobiles, laptops, gaming pc’s, mp3 players, LCD’s etc. unless it is essential. and even then prefer bare minimum. dont go buy purchasing high branded products like iphones, ipod macbooks. you are paying 4 times the manufacturing cost to them and using nothing from them. remember when american pays $800 for iphone he pays some white paper and when indian pays he pays pure gold. stop buying hard disks just to make libraries, buy only whats essential
2) stop buying unnecessary software’s. always buy laptop without windows. most people buy laptop to browse internet, watch movies and some people for making power-points etc. please use free options like linux os, libre office etc. they are as good as windows software, in fact better when considered what Indian’s need. please restrain buying paid antiviruses. only professional high security working people need them. free alternatives like avira, avg, avast are very good for 99% population. Gamers please stop buying games. please try to find used games and share your library with friends. never make purchases for hollywood movies, remember you are giving them dollars and theys are not purchasing Bollywood movies back. most of the blue-rays are imported, so they are costlier than indian versions
3) stop eating at foreign food chains like McDonalds, kfc etc prefer indian hostels. instead of eating everyday at macD, use some indian daba system. its cheap and healthy. stop drinking foreign liquors and drinks. instead of coca cola in posh hotel, prefer milk shake from corner shop. they are not difficult to find
4) please restrain from using private transport, use buses metro, trains etc. consider before buying foreign brand vehicles. maruti and tata are good both for mileage and maintenance, more-ever there parts are mostly made in local factories. be proud that you are giving other indians both jobs and money
5) ban useless brands that are just for show off. there are many examples like watches, perfumes, beauty products, apparels etc
if middle class indian followed above simple rules even for 6 months then dollar value will come down to 40