"If economy is growing at 7.8% why is the PM asking us not to travel abroad, not to buy gold, not to have foreign weddings etc"
Let me explain: East Asian nations (Japan, Taiwan, South Korea and later China) all went through a phase of rapid GDP growth combined with the need to conserve foreign exchange. Here is why that happens.
1. Our economy is growing at a good rate but we still have an import dependence, in both energy and in technology. In fact, the faster the economy grows, the greater the need for both energy and technology inputs.
2. To balance that import dependence, we have to export more and our exports are surging. However, even our exports need advanced technological inputs (precision machines, materials, CPUs, GPUs, advanced software etc) that we need to import today.
3. Catching up in all of these areas takes time, often measured in decades. We have made a good start but we need time.
Look at how long it took East Asia to catch up with the West. Their economies were growing rapidly even as they worked hard to conserve foreign exchange.
That is exactly what our government is trying to do.
Once we gain competence in all the advanced technlogies, and achieve energy independence through renewable energy that we develop the technology for, we would no longer need to conserve foreign exchange.
The situation is similar to a fast growing company that needs capital to grow. So it has to conserve capital to invest in growth. Our nation needs to conserve foreign exchange likewise.
NSE in last 72 hours broken down by value and volume.
From Reliance and HDFC Bank dominating by value to Vodafone Idea taking the lead by volume, the numbers tell a very different story.
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