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How Indian Rupee Value Fell Compared To 1948?
By: Tupaki Desk | 12 Oct 2022 11:02 AM GMT
India is the biggest democracy in the world and we recently celebrated 75 years of independence. As a country, we went through many changes and transformations in the past seven decades. But the value of Indian currency has been troubling us for some time. With each passing day, the Indian currency is getting weaker and weaker before the US dollar.
The Indian rupee is now trading against the US dollar at over 82 rupees which is the weakest of all time. Going by the current trend, the experts predict that India might touch the massive 83 rupee mark against the dollar.
America might be a developed nation and possess a superpower, but the difference between the US dollar and Indian currency was not that big in 1948. As per the experts, the Indian currency traded at three rupees and thirty paise back then. Cut to 75 years, the Indian rupee became very weak against the dollar.
In the past seven and half decades, a lot of things happened which resulted in the Indian currency becoming weaker. The Bretton Woods Agreement coming into force is a major development as the USD became a global currency. Before this, gold was used for trading and the US currency replaced it.
On the flip side, the financial reforms are also said to have played a role in making the Indian currency weak. Seeing that the big nations are also depending on investments made by private companies, the Indian government in the 90s imposed a few reforms.
Going for reforms was the need of the hour for India as we were dealing with a deadly crisis. To beat the crisis and bring big investments, the Indian government went for reforms. Foreign Direct Investments were allowed and this is also said to be a reason for this.
Looking at the impact Indians will face due to the difference between the US dollar and Indian currency, the costs of everything will be increased as we have to pay in dollars for things that we import. Fuel is one of the biggest imports India does as we are dependent on other nations.
To reduce dependence, the Indian government is focusing on alternatives and giving a push to electric vehicles. Though it is a time taking process we would get a big relief if Indians start using electric vehicles.
The Indian rupee is now trading against the US dollar at over 82 rupees which is the weakest of all time. Going by the current trend, the experts predict that India might touch the massive 83 rupee mark against the dollar.
America might be a developed nation and possess a superpower, but the difference between the US dollar and Indian currency was not that big in 1948. As per the experts, the Indian currency traded at three rupees and thirty paise back then. Cut to 75 years, the Indian rupee became very weak against the dollar.
In the past seven and half decades, a lot of things happened which resulted in the Indian currency becoming weaker. The Bretton Woods Agreement coming into force is a major development as the USD became a global currency. Before this, gold was used for trading and the US currency replaced it.
On the flip side, the financial reforms are also said to have played a role in making the Indian currency weak. Seeing that the big nations are also depending on investments made by private companies, the Indian government in the 90s imposed a few reforms.
Going for reforms was the need of the hour for India as we were dealing with a deadly crisis. To beat the crisis and bring big investments, the Indian government went for reforms. Foreign Direct Investments were allowed and this is also said to be a reason for this.
Looking at the impact Indians will face due to the difference between the US dollar and Indian currency, the costs of everything will be increased as we have to pay in dollars for things that we import. Fuel is one of the biggest imports India does as we are dependent on other nations.
To reduce dependence, the Indian government is focusing on alternatives and giving a push to electric vehicles. Though it is a time taking process we would get a big relief if Indians start using electric vehicles.
