It’s one thing to say that there’s nothing to panic about as the rupee goes into free fall, but it requires statesmanship and vision to see the advantages of a weak rupee and try to cash in. The weakening rupee provides an opportunity to boost the manufacturing sector, specially the millions of small and medium enterprises. The weakening rupee has made imports, particularly Chinese imports which today flood every segment of manufacturing, much more expensive. This is an opportunity for Indian SMEs — in engineering, electronics or even toys — to step in.
One of India’s biggest problems today is unemployment, which according to the latest survey has increased and job opportunities are withering. It is the manufacturing sector alone that can provide the jobs needed to meet the burgeoning unemployment situation that poses serious socio-economic and political hazards and heralds unrest.
This needs a government that works with alacrity and knows its business. In this context it is disturbing that the defence ministry has made such a song and dance in the Defence Procurement Procedure 2013 about “Buy Indian” and “Buy and make Indian”, ignoring the simple but critical pleas of India’s defence industry on issues like providing risk cover against exchange rate variation and rationalising taxes and duties, among other critical issues.
It is also important for the government to immediately implement a policy of holding responsible those delaying such critical decisions in the defence ministry and elsewhere, asking them to explain the reasons for delays.