Journey Of Rupee: India is celebrating seventy fifth anniversary of independence. India has made a number of progress economically within the final 75 years. Now the goal has been set to make India a developed financial system in 2047. But in these 75 years the Indian forex has additionally come a great distance. The forex of any nation is seen as a barometer to measure the energy of that nation’s financial system. The Indian forex rupee has traveled from Rs 4 to Rs 80 in 75 years.

When India obtained independence in 1947, the worth of 1 greenback was equal to 4 rupees. After that the Indian financial system noticed a number of ups and downs. From financial disaster to discount in meals grains and industrial manufacturing needed to be confronted. The India-China struggle and the India-Pakistan struggle led to a fee disaster. India’s overseas change reserves was empty as a consequence of costly import payments. India was on the verge of defaulting. Then former Prime Minister Indira Gandhi determined to devalue the rupee, after which the worth of rupee towards one greenback got here down from 4.76 to 7.5 rupees.

In 1991, as soon as once more the Indian financial system was engulfed in a cloud of disaster. India didn’t have overseas change to fulfill its import necessities. There was no cash even to repay the mortgage. India was once more on the verge of default. After which the choice of historic financial reform was taken.

To avert the disaster, the RBI devalued the rupee in two phases. First 9 p.c and later 11 p.c. After this devaluation, the worth of rupee towards one greenback turned 26 rupees. That is, within the 75 years of independence, the rupee got here down from Rs 4 to the extent of Rs 79 to Rs 80. That is, the rupee has weakened by 75 rupees in 75 years. There are many causes for the weak spot of the rupee. The commerce deficit widened as a result of growing import of crude oil. Which has reached near $ 31 billion. Whereas when India obtained independence, there was no loss to India.

Due to the worldwide monetary disaster in 2008, the rupee weakened additional. The rupee which was on the stage of 46.4 in 2009, which got here all the way down to the extent of Rs 79.5 in 2022. But now the potential for devaluation of the rupee is negligible. Because there is no such thing as a scarcity of overseas change reserves with RBI anymore.

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