THE DYING RUPEE WILL RECOVER!!

I recently did this project on the rupee. I had to get newspaper cut-outs and research on the depreciating rupee. By undertaking this project I learned a lot about the Indian rupee, which I never got to know while I was in the US till recently. I also learnt about monetary policies used by the Reserve Bank of India in order to improve the prevailing situation. I also learnt how government is using the fiscal policy to keep the value of rupee stable.

 India has to pay more to foreign countries to import goods and get services done for them. The lowest the rupee value was Rs.17 for one dollar and the highest it went up to was Rs.69 for one dollar and is currently around Rs.63, It has almost reached four times the amount. I read in one of the newspapers that rupee value will decrease and increase at its own pace. One of the spokesperson said that RBI stopped caring because they cannot do anything about it anymore.

I also learnt about how the country suffers if the value keeps depreciating. For example, when India purchases goods from other countries, India ends paying more rupees that previously. So, basically India is losing a lot of money. However, all these conditions are only temporary. Finally, I learnt from the Economics teacher that weak rupee is not always bad; this opportunity should be exploited because exports will get cheaper and India can take advantage of this situation and export more goods and services. When exports grow, imports drop and investors start knocking our doors once again. Let us give incentives like tax relief, quick response at the entry points for import of raw goods by exporters and speedy product export clearances, which help making our exports more competitive.

The rupee value will certainly stabilize at some point of time. By doing this project, I got a practical exposure of how economy operates and other related issues. I would like to undertake such research activities in the future.