India heading towards worst economic crisis: experts | Pakistan Today

India heading towards worst economic crisis: experts

The sharp drop in Indian rupee against dollar has triggered concern among the experts who say its continued fall could pose some major challenges to the Indian economy in near future.
Experts say the fall in the rupee has bloated the size of oil import bill for India forcing the government to hike the petrol prices by a steep Rs 7.54 per litre on May 23; the prices were reduced by Rs 2 after some days, KMS reported.
Curiously, the hike created ripples across the country and evoked wide condemnation. Experts said there could be many more price hikes of petrol in the immediate future. “Even the government could go for decontrol of diesel, LPG and kerosene,” they said. “Increase in the prices of petrol is due to the appreciation of dollar against rupee,” Professor Nisar Ali, economist said. “We have to pay for crude oil in dollars and increase in value of dollars automatically makes the oil dearer,” Professor Ali said. Professor Ali likened the increase in oil import bill with `imported inflation.’ Shakeel Qalander, industrialist blamed the Indian government for the hike in petrol prices and depreciating rupee. “This is the result of the bad policies” of New Delhi, he said, adding that such an economic scenario has “shaken the confidence of investors in the country.”
Experts said that the reason behind low investment could only be attributed to the volatile economic environment that doesn’t inspire confidence in global and domestic investors to put their money in the Indian market.

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One Comment;

  1. truth bites said:

    over investment in India by global companies are under pressure at home to move jobs back to their countries of origin to reduce un employment and also aided by recession and cut backs.

    India hugely relyig on outsourcing from western world where recession is hitting the new projects and fundig is now having effect on Indian economy.

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