Saturday, June 02, 2007

Not inflation, now trade deficit?

The markets will correct on the concerns of the burgeoning trade deficit month after month. The exports are decreasing and the imports are increasing, the situation will lead to a condition where it becomes every body’s concern. The beauty of the Govt.s job is to make some damage to a smooth going economy in the pretext of managing a situation under political compulsions and correcting with other concerns. The recent example is the Sugar export ban, now the govt. offering the incentives as hospital charges to regain the health of the industry. The next is the cement issues and bashing the banking sector making the rupee appreciation. Now the incentives are around for the textile and leather exporters. There was a clear lack of coordination among the different ministries and foul playing with the economy with their short sighted independent approach.

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