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India plays an very important role in the leadership of the swell markets and developing nations and economics. There are a some ways of watching at India’s present economic woes watching by the rapid fall in the value of the Indian rupee.Many well known economists and political analysts on the far right select to describe the external sector situation as worse than the 1991 economic trouble India had faced.Not everyone agrees with the story that the India of 2013 is worse than it was in 1991.The world was very different in 1991 when western economic were still strong and looking outside, trying to become strong the process of economic globalization. And inflationary stress would be increase two times as rising food prices, and connect with imported inflation in form of rose oil prices in the global market. This lesion is as important for the government as it is for the Indian capitalistic which has shown a aptitude to use cheap finance and hard to reach resources such as coal,land, spectrum and iron. Country is faced with a difficult economic situation for which some are domestic factors were responsible that have impacted rupee and Indian economy.There are too problems happened due to tension that are in Syria and they have mandatory result for oil prices.There are no fresh policies to revive the economy because GDP growth rate burden to 5% and it is doubtful if we can achieve even that. India hasn't seen like a worst government in its history. India exports less while imports much more, so the current account loss is at an unstable 4.8% of GDP.Until it is brought down, that is very little hopes of revive investors confidence in economy. On the upside, this year monsoon will direct to bumper agricultural production, and the cheaper rupee are too comes with thick silver lining. There will be attack in exports, especially in sectors like information technology and pharmaceuticals, there India is a strong performer. There are some advantages of fixed exchange rate happen when a country tries to take the value of its currency at against the level another currency. Avoid currency versatility-If a firm faith the import raw materials devaluation would up the costs of imports and would destroy portability. If a currency is falling low its band the government will have to interfere.it can do this buying real but that is only short term measure. There should not government interference in the business activities. The most effective disadvantage of the economy,way to increase the value of a currency is to raise the interest rate,it will reduce inflationary pressure. Economic effect of stock market -The impact is that people with shares will see a decline in their wealth. If the fall is valuable it will affect their financial outlook.Often share price campaign are reflections of what is happening in the economy.Bad headlines for today is that of falling share prices are another factor which discourage people from spending. There is growing fear about the future, but Indian's middle class may not have faith yet in possibility of economic regeneration .We can not see things improving soon, but we hope and feel that good days will come again. Share Trading Tips
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