The Rising Current Account Deficiet

Every day we are listening in news that the the CAD is rising due to the outflow of the foreign currency due to selling of bonds and equities of the FII's. This leaves the effect on our share market and the economy. Even the FDI which was done earlier is diluted now as the foreign investors are taking their money back to their country as they are not finding india attractive place to invest anymore. 

FDI is like taking a loan for a long term, we have to repay at some time in future(taking back of money by the companies). Its not a bold method to currect our CAD, if it was a good method then from the last 65 years why is the govt not able to eliminate it. 

FDI is like borrowing the blood of someone to provide energy to our body, but still howfar ?? At the end, only our blood comes to the use of providing strength to our body. 

Similarly, to come out of this vicious circle of CAD our govt should focus on increasing exports and reducing the imports instead of focusing on bringing the FDI to india. 

Exports will work like our own blood in the body. In the long term, only this can take india out of this viscious circle of CAD. 

We are the worlds largest agricultual economy even then we are short of foodgrains , why ? The foodgrains are getting rotten at the warehouses, they are wasted, all this due to the faulty policies of the govt. If we put in correct policies we can export theses agricultural produce after fullfilling the needs of our people. 

We have the power to become self sufficient and export oriented country.