India is one of the major G-20 economies. In 2012 it was ranked as the 19th largest exporter and the 10th largest importer in the world. However, recently its people have seen a steep decline in its growth. The policies of the RBI have ticked the clock back to two full decades of the Indian economy.
The rupee (INR), as well as India’s economic model is now on the ventilator. The INR, as against USD, has toppled the 69-rupee mark, with a drop of over 48% in the currency. India’s CAD is not a new thing. For years now, the balance of payments has been financed by the FII and the FDI – the foreign money. The country’s GDP has dropped from 9-10% two years ago to a 4-6% window in this year, a 50% fall in the economic growth in three years’ time. Continue reading..