LETTERS: Indian rupee impact
Apropos of the news story “India’s demonetisation could impact Nepal” (THT, January 12, Page 10), for the last couple of months India’s demonetisation news has occupied the media headlines in the Indian sub-continent, and it has also drawn attention of the world.
However, it is not surprising that the Indian economy is influencing the regional economy, particularly in Nepal and Bhutan where Indian denomination is in circulation across the borders. Developing countries like Nepal, Bhutan, Bangladesh, Afghanistan, Sri Lanka and the Maldives are directly affected by India’s demonetisation.
Similarly, in Nepal’s context, a World Bank report shows that India’s demonetisation could impact Nepal’s economy too due to many factors. It is true that Nepal’s currency is pegged with the Indian rupee.
Although India wants to clean-up her “black money” through the demonetisation, India stills pays attention on US policymakers as to how they will formulate their policies in this regard.
So, my point is how can Nepal maintain her GDP at 4.8 percent as per World Bank forecast report for 2017. I doubt this. Therefore, the government should carefully make substantive plans and policies when it comes to passing bills in Parliament.
As a result, Nepal’s GDP will meet the target of the World Bank forecast if proper policies are put in place to deal with the demonitisation drive in India.
So, let us make our country proud at a time when it is moving forward to the path of economic prosperity. It’s time to act on our own rather than wait for joining hands with others.
Saroj Wagle, Bara
The repeated brawl and political war between the West Bengal State Government and the Center will have negative impacts on the center-state relationship and the weak economy of the state.
WB has suffered historically due to strong difference of opinions and political ideology between the ruling state and central governments post-independence.
The consequence has been that the state suffered the worst economic development for decades, and what is more disturbing is her poor record of rapid industrialization and failure in generating employment for the young working force.
The state administration has limited opportunity to increase direct employment and has to look for private enterprises and heavy industries for generating more employment.
But the political situation in the state and the constant warpath with central government is going to scare away any national or international initiatives for establishing credible industries within the state.
The state government needs to think seriously about this and make sure that constant political agitation does not shift its focus from the bull’s eye objective of economic revival of WB.
Unless this happens there will be no platform available for the political parties to agitate in the WB.
Saikat Kumar Basu, Canada