The Value of Indian Rupee
The gold import industry has added almost $64 billion to increase this trade deficit. As the local currency is down the binary traders are trading flat as they gave up gains.
Steps to be taken by the government
The finance minister has shown keen interest to control import of gold. He has praised the states for containing such fiscal deficit and also for generating proper revenue surplus. He is optimistic that Indian economy will show continuous growth despite the slowdown in global economy. He has indicated that the government will take decisions to improve the financial situation and also to improve expenditure. He stressed on procedures which will help to control expenditure and also to augment resources. He also added that these measures might cause some pain but it will definitely bring down this prevailing deficit in the next three years.
Thoughts of Binary Traders
According to some traders the measures will bring down deficit almost to 3 percent in coming years. They think that there will be a fiscal deficit 5.3 per cent in the year 2012 and 2013. The weak tax revenue generating methods and oil subsidies are considered as important factors for the downgrading of local currency. To reduce this burden there has been a hike in the price of diesel and the numbers of LPG cylinders are reduced to six. Measures will be taken by government to reduce the difference between export and import in order to improve the account deficit of the country. Some of these traders are hoping that FDI will improve the current economic condition of the country.
Though the traders are hoping that market will improve it is evident that the global economy is still not in a stable state. The fiscal cliff in the US is still showing its impact on the economy. Europe is still struggling to come out from monetary crisis. The traders are watching the market development very carefully as the prevailing volatile condition of the market can present them with huge losses. Binary traders have to be extra careful while taking any decision because a particular error might fetch them loss. With this year coming to an end, they are hoping that the next fiscal year will be financially stable.