India's Prime Minister, Dr. Manmohan Singh, is now also in charge of the Finance portfolio as Dr Pranab Mukherjee has resigned and filed his nomination for the Presidential post.
Dr Manmohan Singh-ji would like the Indian economy to roar like a lion, and revive the 'animal spirit' and lift the mood of pessimism that has beset India recently. The RBI repo rate is stubbornly high, fueling inflation and slowing growth, in my view. A tweaking of this, the best tool available at this stage, would not only make the economy roar, it would help the worldwide economy as well.
The petrol price is being reduced by 4 Rupees per litre, in line with prices worldwide, to be effective 1st July.
Also there is news of a review of road building to the tune of $5.3 Billion, to help reduce the congestion as well as build some new roads and inter-state highways. Such measures will improve things for people as well as create jobs and use of the vast resources that lie dormant in India. More such projects will do a world of good, and where there is growth, naturally enough people want to share in the growth story and participate, so there would be investments coming in and helping to turn the tide in favour of the Rupee. At 57 Rupees to the dollar, the rate is absurd. In my view, 48 to the dollar would be more like it.
The Prime Minister, who is a brilliant economist, will no doubt initiate some corrective measures and enable the people resume economic growth. As a spirit of optimism arises in India once again, the Sensex and Nifty will be moving ahead in the next few months.