The document summarizes a discussion on the devaluation of the Indian rupee. It includes comments from various panelists. Mr. Ravindra Vepari stated imports should decrease and exports should increase. He also discussed investment coming in and out of India. Mr. Shankar Somani noted India has run a current account deficit for 20 years due to high imports and lack of import control. Mr. Hemant Desai said the devaluation is due to government policy failures, corruption, and lack of clarity on foreign investment terms. Mr. Shrinivas Rao stated India's growth has suffered from "policy paralysis" that has discouraged foreign investment due to an unfriendly climate for business.

1. 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

2. Panelist
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
By, Shivang Patel

3. Mr. Rakesh Doshi – Introduction to Discussion
• 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.
By, Shivang Patel

4. Mr. Ravindra Vepari
• 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.
By, Shivang Patel

5. Current Account Deficit
By, Shivang Patel

6. 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

7. Mr. Parag Shah
•
•
•
•
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.
By, Shivang Patel

8. Mr. Hemant Desai
• 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.
By, Shivang Patel

9. Pointers by Mr. Hemant Desai
By, Shivang Patel

10. Mr. Shrinivas Rao
•
•
•
-
•
•
•
•
-
“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
By, Shivang Patel

11. Summary & L-earnings
• 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.
By, Shivang Patel

12. Video
By, Shivang Patel

13. Thank You
By, Shivang Patel