Is There Going to be a Huge Recession ?

Is There Going to be a Huge Recession, why does the rupee keep falling, explained by former Vice-Chairman of NITI Aayog, Rajiv Kumar. He said that when the rupee weakens, the exporters get more rupees and their profit increases. This encourages exports. Due to this there will definitely be a reduction in the current account deficit. The Indian rupee has reached a record low against the US dollar. The value of rupee has reached 80 rupees against one dollar.

The depreciating rupee has added to the concern. However, former Vice-Chairman of NITI Aayog, Rajiv Kumar said that the falling price of rupee is not an alarm bell. We should not be afraid of the weakness of the rupee. 

Why Recession ?

Rajiv Kumar said that the euro and the dollar have become almost equal. This is surprising. The strengthening of the dollar is being seen all over the world. This is quite surprising. It is being said that there is going to be a huge recession because the US Federal has raised interest rates. Despite this, the strength of the dollar is surprising. He said that this is the reason that when there is uncertainty at the global level, then all people tend to move towards where they feel there is some strength.

In such a situation, people want to invest in dollars. At the same time, he said that there is no such thing as an alarm bell for us. Our economy is strong and there is no need to panic. We can overcome this situation.

Why is Indian Rupee Falling ?

He said that when the rupee weakens, the exporters get more rupees and their profit increases. This encourages exports. Due to this there will definitely be a reduction in the current account deficit. He said that if the rupee depreciates, then exports increase and imports are sure to come down. He said that we benefit from these ‘automatic stabilizers’. We should not be afraid of the weakness of the rupee. If exports increase, employment will also increase.

He said that the RBI has taken steps favorable to its policy. According to this, whatever has to happen, there should not be much ups and downs in it. There should be a managed change, so they have taken steps regarding it. Till the exchange rate does not jump much, we should accept it. Now the level is favorable.

Rahul Kumar said that there is a need to bring in external investment. They need to be attracted. He said that outside companies are making preparations to leave China, there the risk has become very high, how do we attract them and make a company-based policy. He said that if the world remains uncertain, the demand for the dollar will increase and all other currencies will weaken. It should be taken for granted. Also said that not to be worried too much. Checkout for more banking news.