ELECTRICITY: the future gold-2

Indian economy is under threat! GDP has come down to 5%. People are not getting jobs and over that many MNCs are dropping down their existing employees. The tough time for India has began.

This is the news that we all are hearing nowadays. But as per my view this slow down won’t effect for a longer time, because there is an economic slow down through out the globe and the central government is taking a few major steps to overcome it as soon as possible.

At present there is economic slow down, but as per my analysis Indian economy will be at the peak after 10 to 15 years. INR value in front of USD would come up to 1 USD=10 INR or even less! This might sound funny, but on a serious note let’s connect the things and calculate.

Exports will have to be risen and imports to fall. Most of the foreign exchange is spent on Crude Oil and Gold. The day this transaction is done on some other form, dollar rate will come down! We need to minimize spending on foreign brands and create your own ones. That’s the only possible solution!

Government is more focused on improving number of electric vehicles (EVs). The government has announced subsidiary loans for buying EVs and setting up an EV manufacturing belt from Bengaluru to Mysore. The government has asked the automobile industries to stop the diesel engine vehicle production by 2020. There are also chances that the government may also ask them to stop petrol engine vehicles’ production by 2025 or 2030. Once the production of diesel/petrol engine is stopped then consumption and import of crude oil will also reduce.

So by next 15 to 20 years almost all the vehicles will be electric in India, then India would import less amount of petrol. If a nation with highest number of petrol vehicles reduces the amount of petrol importing then definitely petrol and crude oil prices would reduce. Since USD value is calculated based on petrol (as INR is based on gold), the value of USD would also reduce as the value of petrol reduces. Eventually, Indian automobile industry will make a major impact on USD within next few years.

There is a huge requirement of electricity in the coming days (it’s better if you set up your own solar power fields, right now). Government should also take major steps for meeting up such a huge amount of requirement of electricity, as it is planning to set up ONE NATION ONE GRID FOR POWER SUPPLY.

Off course, it’s not so easy to replace every vehicle from oil engine to electric engine in a country with 130Cr population having at least 29Cr petrol engine vehicles. Still one or the other day these 29Cr vehicles will be replaced. Now just imagine,

• What would happen to the price of petrol if 29Cr vehicles stop consuming petrol at once?
• What percentage of reduction would happen in the petrol price?
• With such a reduction in petrol price what would happen to value of USD?

Off course petrol price is not the only factor that decides our economy, but remember it is one of the MAJOR FACTOR.