The Indian Rupee has recorded a record fall against dollars to 69.90 rupees per dollar breaking the record of November 2016 when it slumped to 68.65 per dollar.
One thing is quite obvious that since long time our experts have not picked up and definitely it is due to high banking lending rates. In export India is not alone but in competition with other nations particularly China in these days. Any upset in world economy quickly affects the Indian economy.
We have no option but to make our economy shock proof to some extent. The other reasons are rising petro crude prices, India’s massive trade deficit, the capital outflow, poor Indian investments and trade war between India and US and China and US. With US clash with Iran over Nuclear deal and its economic sanctions endorsed by the United Nations will escalate the petro crude prices further.
The American Ambassador to the United Nations Nikkihalay is on a special visit to India she urged India to enforce sanction against Iran by not buying its petro crude from it after November 4 this year.
India is a third biggest buyer of crude from Iran after Iraq and Saudi Arabia. But for Iran the India is its second biggest buyer of crude after China.
Earlier in 2013 also US imposed economic sanction on Iran but at that time India maintained its oil imports from Iran. At that time Iran agreed to receive half of the payment in Indian rupees and rest in dollar only after US sanctions were lifted. The India paid to Iran by export wheat, soyabean and other products.
Taking into consideration the stand of India in the past the America Diplomat Nikkey Halay has come to India to talk about it. She said the America accepts the importance of Indo-Iranian joint project of Chabahar Seaport as it also gave an outlet to land loaded nation Afghanistan on sea shore.
Now with Chabahar the Afghanistan is no more dependent on Pakistan to deal with in business through its territory. US accept that India is working in Afghanistan development and US is helping it in militarily.
By November something may happen internationally and sanction against Iran may not be invoked but if there are sanctions. The India is likely to repeat its role of 2013 by continue to buy from Iran.
In imposing such sanction the US and UN should also consider the position and requirement of others nations. It should not be just America oriented. By sanction it is not only Iran but its buyers are also affected adversely.