A basic course in managerial economics by an amazing professor has led me into believing that all is not lost even if the rupee breaches the 70/$ mark. China has consistently allowed its currency to be devalued for decades now, and it did them no harm. Why then, is there such a hue and cry about foreign holidays and higher education becoming seemingly expensive? Part of the answer lies in the fact that the dollar is the currency of choice in the oil and petroleum market. So a weak rupee means that everything from the petrol in your car to the ATF (aviation turbine fuel) that will propel Air Asia's jets, will become dearer. Now, though that may be a cause for concern, there's hardly anything that our government can do about it.
No, the Congress hasn't paid me to write this. But here's the simple truth: economies the world over had never recovered completely from the sub-prime crisis of 2008. Add to it, the burden of the cumulative debts of the PIGS nations (Portugal, Italy, Greece and Spain). Even amidst such volatile global cues, India still managed to post a GDP growth rates of over 9% in 2009 and 2010. But unfortunately, this could not be sustained for long and owing to a host of interdependent factors, India's wheels of fortune slowed down much before they could gather the desired momentum.
But it's not like that it's the end of the world. And definitely not when your business channel throws bulletin after bulletin of incomprehensible jargon at you. Don't let yourself panic when you hear about how the fiscal cliff will eat up your jobs or someone makes you wonder when the government will address the current account deficit. Sample this: even during one of the financially worst quarters recorded in recent times, a no-brainer like Chennai Express managed to gross 300+ crores. Quick service restaurants are on track to achieving projected targets of 20-25% YoY growth rates. Automobile companies are going all guns blaring to launch newer models at various price points. Isn't all this reason enough to remain positive about the future?
Of course, realists would argue about the ramifications of taking things lying down, but like most sciences, the law of conservation applies to economics as well. If somebody in the world is facing the heat of a severe financial crisis, there has to be somebody else who's gaining from it. Let's all learn to be patient till our economy gets back on track. Until then, there's no running away from the kaamwaali bai when she asks for a raise in the name of reshessun.