| FOREX Reserves India
Hi,
this is in reply to your query whether this news was mainstream or not. the answer is no.
it is not uncommon for the government to use all sorts of mechanisms to fund its working. sometime in the future there will be a meltdown due to excessive spending but till that time the same will continue.
the fact that the govt is selling usd is not an indicator of its perception of exchange rates. the money is being spent for the golden quadrilateral project which is to link the major cities of india through expressways (elevated).
Now i've only traveled to a few countries but as far as i understand roads are usually built by the government and do NOT indicate the governments socialistic tendency.
the govt is running out of money and hence its using some of the pot of money in another account to fund a major project.
Less reading into this is required, I would recommend that you talk to people in the countries you study a little more. It makes understanding non american and non european policies a little easier.
i'll check back at a couple of times in case you have anyother follow up questions.
alternatively the best resource for indian news is businessstandard.com and economictimes.com
ks  |