The falling rupee

1: Lending rates not cut to bring stability to the already existing volatile market.

2: Liquidity cannot be increased now for similar reasons.(Increase in liquidity required rates to be cut)

3: Since liquidity is not increased it will certainly lead to negative growth hence leading to inflation.

4: Hence inflation needs to be checked.

5: Measures to stop imports and increase exports should be taken.

6: For growth rates should have been cut to increase investment sentiments.

7: CAD is also going to affect the economy if proper measures not taken now itself.

National Food Security Bill

This historic bill which will entitle 67 % population of our country to subsidised food grains to check malnutrition and hunger issues for a certain segment of society like the old,children, lactating and pregnant mothers. It is very much debatable that in times when the current economic scenario of our country seems to be very weak with growth pegged at 5% and a huge current account deficit . The government should not have come up with this kind of populist measure which many people are considering it to be seeing the forthcoming Lok Sabha elections. The things that should be seen here clearly in the bill is that it is going to make right to food a legal duty enforceable by the courts which in itself is historic as it would be first of it's kind legislation.
                                       As mentioned in the constitution of India in the form of Directive Principles Of State Policy that it should be the responsibility of the state to look after the social , political and economic needs of the weaker sections of the society and provide measures to look after their welfare. This bill seems to be in sync to the mindset of the constitution makers but since these directives could not be implemented since independence due to lack of finances it is the duty of the governments to put these principles in consideration while formulating laws.
                                         Though the bill is aiming at achieving the social directives mentioned in the constitution as being a developing nation it's duty is to be a welfare state. It should keep in mind the other scenarios also that might ruin the india growth story as with already a demand for subsidy cut in all spheres to cut down on the current account deficit.
                                         It should have proper grievance and redressal mechanisms put in place to check leakages so that the people for which the provisions are being laid down are benefitting from it. PDS of all the states should ensure that delivery is of proper quality. Once this thing is taken care of properly it will ultimately lead to healthier children which in turn will lead to a healthy india and propel growth in long terms.