The Rupee’s Decline: Modi’s Economic Mismanagement

As the British Pound reaches a historic high against the Indian Rupee, questions are being raised about the economic strategies under Prime Minister Narendra Modi’s administration. The weakening Rupee is not just a currency fluctuation but a stark reflection of deeper economic troubles brewing in India.

Under the current leadership, including Finance Minister Nirmala Sitharaman, India was expected to surge ahead. Instead, we’re witnessing a scenario where the economic divide is widening, and inflation is making daily life harder for the common man. The government’s promises of reform and revival have fallen short, leaving the economy teetering on the brink of instability.

The Rupee’s Descent: An Analysis of Economic Mismanagement Under Modi’s India

As the Indian Rupee experiences historic lows against major global currencies like the US Dollar, British Pound, and Euro, it is crucial to critically assess the economic policies and outcomes under Prime Minister Narendra Modi's administration. From a socialist viewpoint, the rupee's depreciation is not merely a market fluctuation but a symptom of deeper systemic issues rooted in economic strategies that appear to favor corporate interests over the welfare of the masses. This report delves into the concerning trends and offers a fact-based analysis to support the argument that the current economic policies are contributing to the distress of ordinary Indians.

Current State of the Rupee: A Historic Low

The Indian Rupee has indeed touched unprecedented lows recently.

1. Against the US Dollar: In early 2024 and continuing into 2025, the Rupee has consistently weakened against the US Dollar. In March 2025, the Rupee traded near 87.2 against the US dollar, marking record lows. This continuous slide increases the cost of imports, fuels inflation, and can make foreign debt servicing more expensive.
2. Against the British Pound: The British Pound has also seen significant gains against the Rupee. In March 2025, the Pound Sterling has climbed to levels nearing ₹110-₹113, reflecting a substantial increase in the cost of Pound-denominated goods and services for Indians.
3. Against the Euro: Similarly, the Euro has strengthened, with exchange rates hovering around ₹92-₹94 in March 2025. This further exacerbates the financial strain on Indian consumers and businesses dealing with European markets.

These figures are not isolated incidents but part of a trend. The persistent weakening of the Rupee reflects broader economic vulnerabilities and policy choices that warrant a closer examination.

Economic Policies: More Image than Impact

The Modi government's flagship initiatives, such as "Digital India," "Make in India," and "Skill India," were launched with much fanfare, promising to transform India into a global economic powerhouse. However, the tangible outcomes on the ground tell a different story.

1. Unemployment and Wage Stagnation: Despite the "Skill India" program, unemployment remains a significant challenge. The Centre for Monitoring Indian Economy (CMIE) reported that India's unemployment rate was around 8.03% in February 2024 and 8.5% in February 2023 indicating fluctuating but persistently high levels. Furthermore, real wage growth has been sluggish for low-skilled workers, failing to keep pace with inflation, thereby eroding purchasing power.
2. Industrial Decline: The "Make in India" initiative aimed to boost manufacturing, but India's industrial output has shown inconsistent growth.  Index of Industrial Production (IIP) data often shows volatility, and certain sectors continue to struggle. Critics argue that the focus has been more on attracting foreign investment through tax incentives rather than fostering a robust domestic industrial base that creates jobs and sustainable economic growth.

Pandemic Mismanagement: A Crisis Amplified

The COVID-19 pandemic starkly exposed the vulnerabilities of the Indian economy and the inadequacies of the government's response, particularly from a socialist perspective.

1. Inadequate Economic Support: While the government announced relief packages, the actual fiscal stimulus as a percentage of GDP was considerably lower compared to many developed and even some developing nations. Reports indicated that a significant portion of the announced package comprised of liquidity measures rather than direct fiscal spending. This approach did little to directly aid the millions who lost jobs or faced severe income disruptions.
2. Disproportionate Impact on the Informal Sector: The informal sector, which employs the vast majority of India’s workforce, was devastated by lockdowns and economic shutdowns. Support measures were largely insufficient, pushing more people into poverty and exacerbating existing inequalities. Critics point out that the government's focus on corporate bailouts overlooked the immediate needs of this vulnerable population.

Agricultural Sector Distress: Policies Against Farmers

The controversial farm laws of 2020, later repealed after massive protests, epitomize the government's approach to agriculture, perceived by many as favoring corporate agribusiness over the interests of small and marginal farmers.

1. Farmer Protests and Policy Backlash: The farm laws sparked year-long protests by farmers who feared deregulation would lead to the dismantling of the Minimum Support Price (MSP) system and leave them at the mercy of large corporations. The government’s initial reluctance to engage in meaningful dialogue and the eventual heavy-handed response further alienated the agrarian community.
2. Rural Distress: Agricultural indebtedness remains high, and farmer suicides continue to be a tragic reality in many parts of India. The focus on market-oriented reforms without adequate safety nets and support systems has deepened the agrarian crisis, impacting rural livelihoods and the rural economy.

Extravagant Spending on Public Image

A significant point of socialist critique is the Modi administration’s substantial expenditure on public relations and image-building, both domestically and internationally.

1. High PR Spending: Reports and analyses have highlighted the government's considerable spending on advertising and promotional activities. Critics argue that these funds could have been better allocated to critical social sectors like healthcare, education, and social welfare programs.
2. Opportunity Cost: The resources spent on projecting a "New India" image could have been invested in strengthening public services and infrastructure, which are essential for inclusive growth and reducing inequality. The contrast between the government's PR blitz and the lived realities of poverty and deprivation fuels the perception of misplaced priorities.

Banking Sector Fragilities: Crony Capitalism Concerns

The health of India's banking sector, particularly public sector banks, remains a cause for concern, with rising non-performing assets (NPAs) and recurring scandals.

1. Rise in NPAs: Despite efforts to clean up bank balance sheets, NPAs remain stubbornly high. This indicates systemic issues in lending practices and regulatory oversight. Critics suggest that there's a lack of accountability for large corporate defaulters, fostering an environment of crony capitalism.
2. Banking Scandals: Frequent banking scams and failures erode public trust in the financial system. The socialist perspective argues that the government has not been stringent enough in regulating the financial sector and holding powerful actors accountable, thereby jeopardizing the savings of ordinary citizens.

Economic Sovereignty and Foreign Policy

While attracting foreign investment is often touted as a success, socialist critics caution against over-reliance on foreign capital, raising concerns about economic sovereignty.

1. Dependence on Foreign Capital: Aggressive pursuit of foreign direct investment (FDI) can make the Indian economy vulnerable to external economic pressures and policy dictates. Critics argue that this dependence can compromise national interests and limit the government's ability to pursue independent economic policies focused on domestic welfare.
2. Trade Imbalances: India continues to run trade deficits with several major economies. While trade is essential, persistent imbalances can weaken the Rupee and reflect underlying competitiveness issues in domestic industries.

Towards Equitable and Just Economic Policies

The socialist critique of the Modi administration’s economic policies is rooted in the observation that the current trajectory is exacerbating inequalities and failing to address the fundamental needs of the majority of Indians. The persistent decline of the Rupee is a macroeconomic indicator of these deeper structural problems.

To reverse this trend and build a more robust and equitable economy, a fundamental shift in policy orientation is required. This includes:

1. Prioritising Social Welfare: Increased public investment in healthcare, education, social security, and rural development.
2. Strengthening the Rural Economy: Implementing policies that genuinely support farmers, ensure fair prices for agricultural produce, and promote sustainable rural livelihoods.
3. Reforming the Financial Sector: Strengthening regulatory oversight, ensuring accountability in the banking sector, and prioritizing financial inclusion.
4. Promoting Domestic Industries: Fostering a conducive environment for domestic manufacturing and reducing over-reliance on foreign capital.
5. Fiscal Prudence and Accountability: Re-channeling public spending from image-building exercises to essential social and economic programs.

The data and trends indicate that the current economic path is unsustainable and unjust. A course correction is needed to steer India towards a model of economic development that prioritises equity, social justice, and the well-being of all its citizens, not just a privileged few.

As the Rupee’s value diminishes, so too does the hope of millions who had expected much more from Modi’s promises of ‘Acche Din’ (good days). The time for real economic reform and meaningful action is now—if the current trends continue, the consequences could be long-lasting and severe.

Sources:

1. Current Exchange Rates: Google Finance - USD to INR , Google Finance - GBP to INR, Google Finance - EUR to INR
2. Unemployment Data: Centre for Monitoring Indian Economy (CMIE)
3. Index of Industrial Production (IIP) Data: National Statistical Office, Ministry of Statistics and Programme Implementation

Disclaimer: The exchange rates mentioned are approximate and subject to daily fluctuations. The economic data cited is based on reports available as of March 2025. For the latest figures, please refer to the source links provided.

Quantum Teleportation: Oxford’s Leap Towards the Future

Introduction to Quantum Teleportation

Quantum teleportation is not just a fantastical concept from science fiction but a real scientific achievement that’s beginning to unfold. At the University of Oxford, researchers have taken significant strides in making quantum teleportation a reality. This technology involves transferring quantum information—such as the exact state of an atom or photon—across space without moving the physical object itself.

What is Quantum Teleportation?

Quantum teleportation is based on the phenomenon of quantum entanglement, wherein two or more particles become so deeply linked that the state of one particle instantaneously influences the state of the other, no matter the distance separating them. This phenomenon, which Einstein famously derided as “spooky action at a distance”, is at the heart of quantum teleportation experiments.

Oxford’s Groundbreaking Experiment

Researchers at Oxford used a ‘photonic network interface’ to connect two quantum processors. This experiment demonstrated the ability to perform quantum computations using qubits from interconnected quantum processors over a distance of six and a half feet. Such a capability is pivotal as it demonstrates the feasibility of expanding quantum computational tasks across multiple quantum systems, potentially leading to a robust network of quantum systems—a quantum internet.

Towards a Quantum Internet

The concept of a quantum internet represents a new paradigm in information security and computing power. By enabling quantum systems to interact, it’s possible to create ultra-secure communication channels and vastly more powerful computational networks. The Oxford experiment marks a crucial step towards such a future, showing that quantum processors can work in tandem even when physically separated.

Technical Challenges and Innovations

The main challenges in scaling quantum computers include maintaining the stability of qubits and minimising quantum decoherence—the loss of quantum states due to interaction with the environment. The Oxford team’s approach, using light for data transmission, represents a novel solution to these challenges. This method not only helps maintain the integrity of quantum information but also provides the flexibility needed in a scalable multi-quantum processor system.

The Potential of Quantum Computing

The future possibilities of quantum computing are immense. Quantum computers, through their ability to handle vast amounts of data and perform computations at speeds unachievable by classical computers, have the potential to revolutionise fields ranging from cryptography to drug discovery, and even complex system modelling.

Future Prospects

While the potential of quantum computing is boundless, the technology is still in its infancy. Challenges such as error rates and qubit coherence need to be overcome. However, as these technological hurdles are addressed, we can expect quantum computing to become increasingly integral to solving some of the world’s most complex problems.

The research at Oxford is not just a testament to the progress in quantum physics but also a beacon pointing towards the future of computing. The integration of quantum teleportation into practical technology could well herald a new era of computing, marked by unprecedented speeds and security. The path forward is challenging but filled with the promise of transformative breakthroughs that could redefine the technological landscape.