By, Shivang Patel

Devaluation of Rupee (`) @ SGCCI

Objective: Download the information that was discussed @ SGGCI on

devaluation of ` & eventually L-earn more from today’s discussion

By, Shivang Patel

Mr. Ravindra Vepari

CA, Social & Political Expert

Mr. Shankar Somani

Chairman Sumit Industries

Mr. Parag Shah

Director K. Giridharlal

Hemant Desai

Chairman & MD Concept Securities

Mr. Shrinivas Rao

HOD for Department of Economics @ VNSGU

Panelist

By, Shivang Patel

• Gold Standards – The amount of gold you have in reserves you can print that much currency.

President Richard Nixon Changed it & now the

price of your currency has to be decided daily;

demand and supply of your currency.

• Cipla invested 2700 Cr to African countries.

Mr. Rakesh Doshi – Introduction to Discussion

By, Shivang Patel

• Imports should Decrease.

Main Imports:

Oil, Gold, ETRX goods, Defense Equipment Etc …

• Exports should Increase.

Textile, Mining Etc …

• Investment out of India Vs Investment coming inside India

• Time taken for permission for FDI’s.

• Change in policies for e.g. FDI

(Government permitted 36 projects this week)

• Exports

- Mining;

- For Iron Core people have started to import as Mining as it was stopped in Goa and Orissa to stop illegal activity

- Due to Coal Scam , Coal worth 4 Billion$ has been imported.

- Reliance & Cairns is denied to dig more Oil by petroleum ministry

E.g.: Vedanta in Orissa – Farmers opposed and Mr. Gandhi Supported (` 30K Cr Investment Stopped)

Posco in Karnataka – 12 Million $ and waited for 9+ years.

7 Lac Cr Investments are being stopped due to disputes with Ministers at different level.

$ Dollar is getting Weaker But in comparison of what.

Mr. Ravindra Vepari

By, Shivang Patel

Current Account Deficit

By, Shivang Patel

Mr. Shankar Somani

• Import is not a solution, we import whatever we feel has shortage with us.

Import and Loan both are never a permanent solution, this situation arises only when we think it as a permanent solution.

• 100Lacs $ Import and 27Lacs $ Export (Statement by Commerce ministry of India)

• India has been living in deficit on its current account since last 20 years.

• 1000 Billion $ Loan on Indian government and its banks.

The reason for all this situation is importing everything and not able to control import policies as government has made agreements that has tied their hands.

Solution right now

• Increase export (Double) not possible immediately.

• Decrease Import, government is not ready to do so.

• FDI, 36 projects have been cleared this week to control situation.

Government is searching for funds that comes to India and goes back along with interest & not that stays back in India.

Government is happy in fact when $ increases as govt earns more on revenue (20%).

By, Shivang Patel

• Feels this is a very complicated issue.

• It is not a symptom but a cause

• Diamonds are bought in $ and Sold in $.

• $ Debts are pending and still business men has bought properties and not paid debts.

Mr. Parag Shah

By, Shivang Patel

• Government Policy failure.

• Indian companies like Karbon Mobile is competing with worldwide brands.(E.G Nokia)

• Corruption at its peak (Coal Scam, 2G Scam)

• Inflation 9-10% in retail

• Decrease in Gold Purchase (Introducing of scheme like gold bond & having the existing gold into circulation)

• Promote incentive on Exports.

• RBI’s approach to today’s business is very cliche.

• Clarity on terms and taxation for FDI’s.(E.g. Nokia)

• Putting aside all political issues.

Mr. Hemant Desai

By, Shivang Patel

Pointers by Mr. Hemant Desai

By, Shivang Patel

“Policy Paralysis”

• Indian growth has not improved due to policies.

• FDI’s are not coming due to policies.

• Funds are going out.

- Funds are not coming in as foreign investors are skeptical because of

Policies.

• Climate for Investment is not suitable in India.

• No one is ready to invest in Telecom due to Climate*.

• Government is not taking any strong steps to rectify this, they are just trying to put patches & the situation will improve post Elections.

• Policies India Vs OECD countries.

- Time Required : India-27 Days OECD- 12 Days

- Procedure to start a Infra Project : India-34 OECD-14

- Registering a Property : India-44 days OECD-26 days

Mr. Shrinivas Rao

By, Shivang Patel

• Encourage Exports.

• Encourage quality of Exports.

• Reduce importing of goods that are available here.

• Improvement in Investment Climate.

• Limit expenditure or money taken out by Indians traveling abroad (for any reason)

• Improvement in overall Rupee Policy.

Summary & L-earnings

By, Shivang Patel

Video

By, Shivang Patel

Thank You