Page 536 - SSB Interview: The Complete Guide, Second Edition

pacesetters. The Defence sector is the least productive as they import
70% of their equipment from foreign countries.

Competitive financial sector:
A strong currency attracts a large number of investment inflows. Present

Indian laws are unfavourable for foreign investors. A country like the

US has strong financial regulations that allow investors to invest very
easily. In India, 49% of investment is done through automatic paths and

above 49% is through government paths. Favourable laws attract foreign

investors and help to build a competitive financial sector.

Low budget deficit:

India should implement a long-term vision for keeping deficit under
control for a longer term, irrespective of political changes. India can

then attract foreign investors, extend the period of bonds and reduce

market risk.

Better education system:

The education system is also an indirect reason for the fall of the value
of the Indian rupee. India still follows conventional methods in

education which are not oriented to the latest technology. The future of

global trade and services lies in innovation and software. India should
consider a bottom-up integrated education system and keep updating this

with the latest technology as this would result in the budding of new

start-ups and innovation companies, thereby attracting foreign
investments.

Way Forward

The Government of India and RBI are closely monitoring the cash flows in

and out of the country. India is also trying to increase exporting of high-
quality goods that have a demand abroad. It also means that using Indian

goods instead of imported goods could help increase the value of the Indian