The rupee free -fall continued unabated today (22th August) again as rupee touched Rs 65 mark first thing in the morning--------------as rumours and serious prediction suggesting that it to soon touch 70 mark;that may trigger a crisis in India's share market, the fastest and closest barometer, measuring the health of the economy.
But Government including the Finance Minister is still helplessly in denial mode, apperntly less worried to find and take immediate steps to restore the steeply declining confidence;with no visible steps to stabilise or to put a pause, at least for the short term and then put in place a concrete long term strategy to resolve crisis of fear and dwindling interests of investors national as well foreign.
It is reliably presumed that Government is over powered by the political leadership, where the Congress President is more interested in getting the vote winner Food Security Bill passed in Parliament in utmost hurry, to take a chance with an early election possibility.
It is no more a hidden fear among the investors that this all out economic debacle in sight and the government trapped in various corruption cases, may not live till the end of year, throwing the economic bubble or debacle to culminate in economic bust in next few months, it may be much bigger and painful then 1991.
The list of seriously related matters is a long one, beyond the imagination and capabilities of the present politics prone think tank of the UPA government and that basically include high fiscal deficit; oversize CAD; rising inflation; decreasing PMI index; lower or negative growth in manufacturing and mining; fast decreasing GDP growth; rising subsidy burden for oil and food front; rising bond yield related burden; rising imports and lowering export in relative term, steeper out flows.
Is there any glimpse of the Finance Minister's seriousness and resolve to bite the bullet ? A big question mark ? More doubts, suspicion, fear of helplessness and resulting answer is big big "no".