India's Rupee Hits New Low Against Dollar, Stocks Slump

[RangerPK]

China may not overtake America this century after all - Telegraph

Irrelevant post reported. Bad trolling....

 

[neehar]

That's why a developing country needs to have a positive trade surplus, no matter how small.

It gives you a lot of financial firepower (spare currency reserves) so you can fix situations just like this.

Even Germany was able to do the best in Europe because their export surplus gave them so much room to maneuver.

well said..for a country with trade surplus it would benefit them if currency devaluates .like ur country.exports become more profitable.hope we turn this in to an advantage soon.

 

[wolfpack]

The cause is pretty obvious. The current pull back by the US Federal Reserve means that dollar would be tight in the coming future. So companies are buying dollar as much as they can. Secondly the huge Gold import has to be curved, reduce or stop import of Gold or put limit on the sale of gold, to rein in the current deficit. Thirdly the Chinese banks have reduced the money they lent out to people. When the two largest economies are pulling back and tightening the cash flow this is bound to happen.



Gold also creates huge devaluation of the currency because of the deficit. What is good for some is not good for all.

Sorry to say investing in precious metals like gold was the norm in ancient india. Forget about the devaluation if i can print gold coins and issue them as normal currency you would see everyone flocking to me place.

 

[wolfpack]

No more tricks,RBI won't sell its precious Dollar reserves to stabilize Rupee.In reality the fall of rupee is not the disease its the cure of the disease that is high inflation which has pushed up the cost of Indian products in global markets leading to a massive trade deficit.The rupee needs to fall if India is to maintain its global competitiveness.I will say let it fall all the way down to 65.

Well what you say is true nonetheless,The government is trying to compensate. But Why do we use USD$? in international market?cos every oil/gas/petrol is done in American dollars$.Does america control saudi arabia? or others who produce OIL/GAS/PETROL? There is an alternative called Solar energy etc. Why not utilise that?

 

[wolfpack]

And now is closing to the end of June which is a long way to the end of September

RBI do still have some tricks up their sleeves why they are not using its not upto me!

Hmm we do have tricks up our sleeves,Weren't you the one who said 3000 pound deposit for getting chinese visa for a indian,a s indians overstay? you got official PRC data to show this is the fact? or you vomiting whatever you can whenever you can?

 

[metro]

 

[Azazel]

Well what you say is true nonetheless,The government is trying to compensate. But Why do we use USD$? in international market?cos every oil/gas/petrol is done in American dollars$.Does america control saudi arabia? or others who produce OIL/GAS/PETROL? There is an alternative called Solar energy etc. Why not utilise that?

Well you have to import solar panels for that you need solar panels.Even to manufacture solar panels locally you need to import capital goods and raw material.For all of these you need dollar.Besides Solar Power is an emerging Technology it need time to be matured.By 2020 we plan to have around 20GW Solar power.But you are still right Solar power power can bring down oil import bill big time.

 

[wolfpack]

 

[wolfpack]

Well you have to import solar panels for that you need solar panels.Even to manufacture solar panels locally you need to import capital goods and raw material.For all of these you need dollar.Besides Solar Power is an emerging Technology it need time to be matured.By 2020 we plan to have around 20GW Solar power.But you are still right Solar power power can bring down oil import bill big time.

Listen bro We already got state subsidies for solar energy, i know its a bit high priced right now, but more and more people use it new technologies will emerge.Solar panels they are made of silica.I am talking about completely boycotting fossil fuels, the amount we spend to procure them and the political uncertainty we see in international sphere is not worth it.
We should develop our own technology and build our own solar panels instead of buying them from others.Don't say we can't where there is a will there is a way!

 

[senkakudefender]

Irrelevant post reported. Bad trolling....

truth is out in the open. Scarily all asian ecos are on the bad side of it.

http://www.bloomberg.com/news/2013-03-08/gross-raises-u-s-economic-growth-forecast-to-3-in-2013.html

We are screwed now. Question is are we in another Asian Tiger story?

 

[shuttler]

Government approves hefty rise in gas prices


Government approves hefty rise in gas prices | Reuters

(Reuters) - India took the unpopular step of approving a gas price rise for the first time in three years on Thursday, a move which could inject much needed investment in local production but boost imports of more costly liquefied natural gas (LNG).

"On gas pricing, the proposal of the Rangarajan Committee has been accepted," Food Minister K. V. Thomas told reporters after a cabinet meeting, referring to a formula which has produced indicative prices around double current levels.

The move will be unpopular with voters as local and national elections loom in the next 12 months, but is key to easing acute power shortages in the country, where cheap gas deters investment and keeps demand way above actual use.

Indicative pricing has suggested domestic gas could rise to around $8.4-8.5 per mmBtu with the new mechanism, drawn up by a committee headed by C. Rangarajan, from a current $4.2 mmBtu. That would help boost revenues of producers like state-run Oil and Natural Gas Corp (ONGC.NS) and Oil India (OILI.NS).

That would be in line with Indonesia's gas prices which are $6-9 per mmBtu but still short of typical LNG import costs.

The government needs to encourage power production in order to help revive Asia's third-largest economy that grew at its slowest pace in a decade in the year ending March 31, 2013.

Demand for gas in India far outstrips consumption, but prices have been kept low for strategic industries, deterring investment in the sector. India has few energy resources other than coal and is the world's fourth-biggest importer of fuel.

"We have a massive shift this year in India from gas to coal, similar to Europe. And the reasons have to do with limited domestic capacity to produce gas and high LNG prices, and the reasons for that have to do with the Indian pricing system," said Christof Ruhl, group chief economist at energy giant BP (BP.L), at a presentation earlier on Thursday.

Currently, India uses coal for nearly 56 percent of its energy needs, with oil filling 26 percent and gas a distant third at 10 percent. It wants to double the share of gas in the mix by 2020, replacing more expensive diesel and fuel oil.

Without a price rise, India's gas demand would have risen to 466 million cubic metres a day (mcmd) in 2016/17 from 286 mcmd, the government calculated, and supply would be only half that.

Some political parties see the move as aimed at helping Reliance Industries (RELI.NS), which has been calling for an increase in gas prices when its contract for sales from its gas block off the east coast expires on April 1, 2014.

Reliance and BP could commercialise other discoveries in the block and help reverse declining production there, said a source privy to Reliance's operations.

And while the reform will still not bring domestic prices in line with imported LNG costs, it will narrow the gap enough to encourage investment in infrastructure to handle higher imports.

Industries that can't get low-priced local gas, which has been restricted by the government to key sectors like fertiliser producers and some power plants, will take LNG as it is still cheaper than alternatives like diesel, fuel oil and naphtha

 

[Arya Desa]

Maybe the Internet at Indian call centers isn't working well?

At least we have a job. The man with nothing laughs at the size of the man's house. Jokes on you, brah.

 

[Bobby]

What does it mean..all you got is some stupid emoticons....

 

[wolfpack]

What does it mean..all you got is some stupid emoticons....

What i mean, was i was drunk last night and posted something funny that's all.I am pushing for alternative energies.So i am happy that this will lead to alternative energies in long run.Fossil fuels were never meant to address our energy concerns.

 

[Cyberian]

... Yeah Yeah,Some might say your Frankenstein Banking system is a bigger worry.Last week RBI data shows an increase of 900 million Dollar.It goes up and down from time to time.We have plenty of expats who sends a lot of money here.

Forex Reserves increased by USD 982.3 million to 290.658 billion
....

Around 25 million Indian expatriates I believe.

What's the size of India's external debt?