tumble of the rupee continues

According to The Economist (2013), the tumble of the rupee continues to grip India. the departing boss of the Central Bank of India had to explain to the audience inorder to dispel the dismay caused by the depreciation of the currency. Most of top business people have been compelled to operate using dollars because of the flakyness of the rupee
. Moreover, the central Bank of India has pledged to provide dollars to big firms that deals with oil-importation in India. Economically, this is one of the ways through which the Central Bank of a country addresses inflation. In addition, the move by the Central Bank of India provided an indirect way through which the RBI was to usec its reserves to support the rate of exchange. The Indian populace is concerned with whether  the countrys currency is going to stabilize. This is because the Federal Reserve has plans underway to end purchase of bonds with the good news of the improvement of the U.S.economy. These are good news given that foreign investors had pledged not to invest in India until the country had raised its rates. Some of these investors had arrived in India with expectations of allocating more funds but after a fall of  prices pessimissim cropped in with the realization that it would go further.
The Authors Goal
The Economist (2013) aims at revealing the credit crunch that has rocked India is pronounced notwithstanding that the rupee has recovered a little. This is because most stress measures in the countrys financial system are still flashing red, which is a reflection of the bad debt problem being faced by Indian Banks. Credit swaps have soared and short-term interest rates in the market have not reduced. The government of India is yet to show the desire to clean up the loans in the bank. Instead it is pressurizing the banks to extend more loans. As mayhem is stalking the currency market in India, the election campaigns are heating up. Legislators in India are known for being lousy at making decisions regarding economic reforms. However, they are highly decisive at passing measures that are more populist. Recently, the legislators agreed at a new program for increment of food subsidies. Credit rating agencies warned that the move would put enormous pressure on the finances of the public. Business say that the new rules set by the legislators will make it harder to purchase land to set up factories, and long delays will be the norm.
The Goals And Authors Style
The article by The Economist (2013) has expressly demonstrated the unfortunate economic situation facing India. With the rupee looking vulnerable, India has a variety of options although none of  them are palatable. One of the options is to let the countrys currency fall further. In most countries where this has taken place, a cheaper currency boosts exports and facilitates the closure of the deficit of the current account. Nevertheless, the manufacturing industry of India is too negligible and restricted by the red tape to make a quick ramp up. A complete overhaul of the balance of payments may take lots of time and during this time, the investors may panic. Analogously, a weaker currency may unstabilize the local economy by contributing to inflation and increasing the subsidies of the government on fuel and hence its borrowing.
Bt opting to do the exact opposite and increase the interest rates to attract foreign money, the Indian industry would be largely affected. The damage would be widespread given that the industry is already in bad shape and that the move will culminate in the increase of bad debts at the banks of the country. If the economy will slow further as a result of the above, then equity investors may begin to worry about the decline of corporate earnings and pull out a large amount of their investments that are part of listed shares (Baru, 2013). Hence, the inducement of a credit crunch in India can make thinks more worse. The option of government borrowing will widen the deficit of the current-account. The authorities are also planning to let the rupee trade freely although they must hold out threats of rise of interest rates or direct intervention in the market for currency in order to scare off the speculators.
 References
Baru, S. (2013). Strategic Consequences of India's Economic Performance. London: Routledge.
The Economist. (2013, August 30). A five-star problem. Retrieved October 3, 2013, from The Economist: http://www.economist.com/blogs/banyan/2013/08/indias-economy