Exports Must Increase...

Article;
RBI-may-cut-CRR-on-Jun-17-policy-rates-on-Jul-30-BofA-ML

Comment;

Our export sector needs a push in the form of a depreciating currency and lower interest rates. The RBI is battling inflation CPI, both food and fuel which is nearly their current levels (10%) since 2004. We can not deny that this inflation is sticky and rigid down wards. I think we should let the people witness what happens when the RBI changes its base period for inflation and what happens to the prices… If we accept prices as sticky and rigid downwards then I think we can increase the liquidity to the market in any form- CRR or repo-rates in favor of the export sector of the economy when our currency is depreciating. I think high interest rates are affecting the export sector in the same way it is affecting the whole economy, less investment, and we want more investment. But, why we want more investment is because we have to reduce unemployment and poverty. And, moreover, CAD is a heavy concern. To eliminate the deficit exports must increase…