Depreciation of Rupee, Result of wrong policies of the Government Maulana Syed Jalauddin Omari, Ameer JIH

September 8, 2013


New Delhi, September 07 2013, In regular press briefing at JIH head quarter the Ameer ( National President) Jamaat-e-Islami Hind Maulana Syed Jalauddin Omari commented on the continuous depreciation of Rupee and said that it is a result of the wrong economic policies of the government in the name of liberalization under the pressure of capitalist imperialist forces which resulted in reduced exports and very steep rise in the imports.

He emphasized that the phenomenon of the current depreciation of Rupee in the international market is a symptom of other bigger disease. The sharp fall in the exchange rate of rupee vis-à-vis US dollar shows that Indian economy is in turmoil and it is so perceived internationally too. This brings to light the hollowness of our claim that we are destined to become one of the largest and sturdiest economies in near future.

The depreciation of rupee is, in fact, a symptom of bigger malaise in economy. The symptom itself needs to be addressed immediately but that would be a short term solution and the ills of economy will continue to recur in one form or another. A long term solution is to diagnose correctly the disease and opt for its complete cure, whatever time consuming or painful be that therapy. The basic cause of any depreciation of money is Current Account Deficit (CAD) where growth of import is faster than that of import. The simple solution is to curb imports and increase exports. And for increasing export the creation of quality products and services and their facilitations are required. Such increase in Import over the years at a good pace can be related to the economic reforms brought in the year 1991 when today’s prime Minister was the Finance Minister.  Import was facilitated and it grew leaps and bonds. Productivity and export were ignored and their consequences followed. The dichotomy was felt later. A correction was done by announcing Manufacturing Policy, 2010, which is, for all practical purposes, a non-starter. The major share of import billing comprises crude oil, followed by items like gold, iron ore and coal. We are facing problem in paying our oil bills in US dollar. Import of gold, a non-essential item can be totally avoided. Import of coal and iron ore which we have in abundance as reserve is a matter of national shame. Our failure to arrange refineries or processing arrangements for improving these raw materials to the stage where these can be utilised as inputs is the major cause of these imports. Further, courts have curbed their export, obviously owing to alleged cases of corruptions.Structural corrections of economics are required.

Maulana Omari added that the solution lies in the fundamental approach suggested by Islam and the world should consider the alternative system of economy which Islam presents. Capital must be brought in on the basis of equity and not as a debt. The debt should always be at par. Islamic approach is asset based equity finance as against the debt-based finance with assured premium on the debt. Finally Islam leaves no scope for the hegemony, like that on US dollar which gets undue benefits of international financial transactions.

Jamaat welcomes Food Security Act with rider

On recently passed Food Security Act by both the houses of the parliament the Ameer JIH said that the Jamaat welcomes Food Security Act.  It establishes a sense of entitlement on behalf of the government to recognize the right to food of its citizens. This is a very progressive step. The UPA government, under the pressure from civil society has finally granted the rights of its people in different areas- RTI (Right to Information), RTE (Right to Free and Compulsory Education), MNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) etc. This is a welcome sign that after 65 years of independence the government has finally recognized the rights of its people.  The Act covers only 67% of the country’s population: 75% in the rural areas and 55% of the urban area (national average). It’s still less. This will create problems in identifying the priority households. Therefore the Government must accept the demands of Universal PDS. And improve and make more effective the PDS.

The Grave Situation in Egypt and Syria

About the situation in Egypt and Syria the Ameer JIH said that the Jamaat-e-Islami Hind views with grave concern the dismissal of popular and democratic government  of Egypt and the unjust actions of the military government . An emergency has been imposed on Egypt  and arrests of office bearers and members of Muslim Brotherhood and torture and atrocities are continuing. The government is even thinking about imposing a ban on the Brotherhood. The military government is responsible for the unjustified death of thousands of men, women and children .

It is highly shameful that some Muslim rulers and their governments are supporting these atrocities and calling the peaceful demonstrators rebels and terrorists. It is evident that they are doing this either on the behest of America or just to protect their power and authority.

It is the responsibility of all thinking Muslims and well-wishers of Ummah and their governments to stop the bloodshed and torture of the innocents and put an end to all undemocratic methods and strive for restoration of democratic rule in Egypt.


In Syria the authoritarian regime of Bashar Al Assad is engaged in the massacre of its own people for the last two and half years. More than 100,000 people have lost their lives and over 20-lakh have been rendered homeless and forced to live as refugees.

After the recent use of chemical weapons in which more than 1300 people mostly children have died, the American government is poised to attack Syria. Bloodshed, use of chemical weapons or use of any type of weapons for committing atrocities against people all these are condemnable acts.

The American attack may enhance the deterioration of situation . Therefore the Jamaat is of the view that America should not intervene. There is a strong apprehension that America wants to attack Syria to help its ally Israel and to protect Israeli interests.  The American attack may complicate the situation and involvement of Russia and other countries may give way to a regional war which may be disastrous for Middle East and lead to economic destabilisation  in the world on a large scale.

America should examine its track record that because of its intervention Iraq and Afghanistan have become victims of permanent instability and witnessing daily bomb-blasts and killings. In this regard the American role has been not only tainted but also shameful. In this respect, the Muslim countries have a big responsibility. They must protects Islamic democratic values in their lands and unite to oppose every act of injustice and tyranny.

The deplorable efforts to pollute the communal atmosphere is of great concern

Commenting on worsening communal situation in the country Maulana Omari said:

As the parliamentary elections of 2014, and assembly elections of some states are drawing near, it appears that organized efforts are being made, particularly in some states, to promote communal tensions and provoke communal conflicts. During last one year about 50 communal conflicts have taken place in Uttar Pradesh alone. In this way the fire of communalism is being stoked while the government is not taking action against the perpetrators. The situation in fraught with grave danger and would weaken the country. This is imperative that the central and states governments must deal with an iron hand every incident of communal violence to maintain the peaceful atmosphere in the country. In this regard we repeat our oft-repeated demand that the central government must present the Communal Violence Bill and get it passed in the Parliament, so that the minorities are freed from the sense of fear and insecurity and are able to equally participate in the progress of the country. Providing security to minorities and putting an end to communal riots would be the proof of the strength of democracy.

In this regard, it is worth remembering that first, the communal elements targeted the Muslim youths in fake encounters calling them terrorists. After investigation, the fact  has become evident that there was a nexus between police and communal elements behind the fake encounters.

The truth behind murder of Sohrabuddin, Kausar Bi, Ishrat Jahan, Sadiq Jamal etc in fake encounters is out and the world knows how these murders were planned and executed by high ranking police officers. The world also knows how youths like Khalid Mujahid were implicated in false cases and killed in custody. The fresh revelations by suspended IPS officer D.G. Vanzara has laid bare conspiracies behind curtain.

It is unfortunate that such efforts which tarnish the image of Muslims are continuing. The well-wishers of the country are generally realizing that this propaganda is being made to continuously stoke the fire of hatred between the two major religious communities of India. The need of the hour is serious efforts on the part of well wishers of the country to change this deplorable situation.

The secretary general Janab Nusarat Ali, and secretaries Ejaz Ahmed Aslam, Muhammad Ahmad and Muhammad Salim Engineer accompanied the Ameer JIH.

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