Since independence, the rupee has depreciated almost 20 times: in 1948, 1 dollar was available at 4 rupees and then there was no debt on the country. When the first five-year plan was implemented in 1951, the government started taking loans from abroad and then the value of rupee also started decreasing continuously. The value of rupee depends entirely on its demand and supply, and imports and exports also have a direct effect. India imports more than exports. A country that imports more than it exports has a higher demand for dollars. India is one of the major importers of crude oil and imports about 80 per cent of the oil, undoubtedly the rising crude oil prices in the international market are the main reason for the fall in the value of rupee.

There is a need to free the manufacturing sector from cumbersome rules. Certainly, through such effective steps, the depreciation of the rupee against the dollar can be checked. Also, if we start using indigenous goods, then the cost of importing foreign goods will be saved. India has no time to rest. For India to become a $5 trillion economy by 2025, we need to export at least $2.5 trillion worth of goods and services, as exports currently account for about 25% of the total gross domestic product (GDP).

In July 2022, India's rupee breached a historic low of 80 to a dollar mark for a day. While the Finance Minister, Nirmala Sitharaman, in the Parliament cited factors such as the Russia–Ukraine war and rising oil prices behind the depreciation, the Reserve Bank of India (RBI) Governor spoke about the simultaneous dumping of financial assets by the foreign portfolio investors (FPIs). Till July 2022, the FPIs sold off US$ 29.6 billion worth of Indian equity and debt after three straight years of net positive investments in Indian financial markets. The inflation growth rate is halted for the time being, but it has not drastically gone down either. July World Price Index (WPI) inflation was at 13.93 percent—compared to 15.18 percent in June. So, the prices in the economy will remain at a high level. Therefore, monetary tightening by the RBI is here to stay.

If a country with free capital mobility fixes its exchange rate with the US dollar and then sets interest rates above the Federal Reserve rates, then foreign capital would flood in, mainly in search of higher returns. Heightened capital inflow would then raise the demand for the local currency and eventually, the local currency would appreciate, breaking the peg with the US dollar. Similarly, if interest rates are set below Fed rates, then there will be a capital flight and subsequent depreciation of the local currency, once again breaking the dollar peg.

So, when capital flow restriction cannot be practically implemented, which is the case in today’s globalised financial world, the policy trilemma boils down to two choices: (a) Floating exchange rate and an independent monetary policy, and (b) fixed exchange rate and external monetary policy dependence. Rich developed countries go for the first option, while some others (like most of the countries that adopted the euro) have to follow the second one.

Measures that India could take to improve value of Rupee:

India fits into the first option bracket. The country has capital mobility, a floating exchange rate and an independent monetary policy—by which it sets domestic interest rates as per the need of the economy. However, the policy tussle remains and what the Indian rupee is experiencing in the last four years bears testimony to that. The RBI periodically intervenes in the foreign exchange market to stabilise the rupee, but the policy trilemma is bound to make the apex bank’s foothold extremely slippery in its quest for simultaneous exchange rate and inflation management.

The Indian Rupee is falling in international market mainly because of an increase in the imports more than the exports.

Due to this the demand of dollar becomes higher than the supply because of rised imports and the Indian Currency Rupee Depreciates.

The cost of crude oil is very high and as India imports more than 80% crude oil ,the foreign capital outflows and the dollar overseas becomes more strong.

In 2022 ,foreign investment shares of almost 200,000 cr were sold , this money that they received was converted into USD for exports, this caused Rupee to fall even more.

The decline in Rupee is also due to Russia-Ukraine war, Corona Pandemic, increased Corruption, Global economic challenges, etc.

As India mostly depends on imports, so the value of rupee becomes weak, we have to pay more for same quantity of items. This results in an increase of the cost of raw materials.

The weak domestic currency boosts exports & foreign buyers gain more purchasing power.

The biggest impact of falling rupee is on inflation as we keep on importing more and more at higher prices, the prices of commodities goes on increasing, adding to further strain on our currency.

The Indian government can adopt following measures to improve value of rupee:-

1.) Increase in Exports.

2.) Decrease in Imports.

3.) Increase Foreign Dierct Investments.

4.) Boosting Tourism.

5.) Boosting Make in India Project.

6.) Improvimg Technology, etc.

As money flows out of India, the rupee-dollar exchange rate gets impacted, depreciating the rupee.

A falling rupee puts pressure on the already high import prices of crude and raw materials, resulting in higher imported inflation. "The Rupee is falling against the dollar primarily because of the growing trade deficit -- imports are increasing at a much higher pace than exports. The increase in imports is mainly due to a sharp increase in crude oil prices following the Ukraine crisis. The increase in the import bill for coal and other essential commodities particularly raw materials has bloated the import bill. A weaker rupee will make these imports more expensive, which will have a short-term negative effect on domestic production and GDP as a whole," said Jyoti Prakash Gadia, Managing Director, Resurgent India. Since India mostly depends on imports, including crude oil, metals, electronics, etc. the country makes payments in US dollars. Now if the rupee is weak, it has to pay more for the same quantity of items. In such cases, the cost of raw materials and production goes up which gets passed on to the consumers. On the other hand, a weakening domestic currency boosts exports as shipments get more competitive and foreign buyers gain more purchasing power. However, in the current scenario of weak global demand and persistent volatility, exporters are not supportive of the currency fall. The falling rupee's biggest impact is on inflation, given India imports over 80 per cent of its crude oil, which is the country's biggest import. The global crude prices have sustained at over $100 a barrel since Russia's invasion of Ukraine in February this year. High oil prices and a weaker rupee will only add to inflationary pressures in the economy.

▪️Measures to improve value of rupee:-

1. Indians have to improve high technology equipment manufacturing. 2. Permit Foreign direct investments judiciously to improve capital inflows. 3. Improvement in Indian Entrepreneurship. 4. Allow healthy competition in trade. 5. Safe guard GDP growth 6. Value addition to our own raw materials. 7. Attaining self sufficiency in food production. 8. Improve R&D investments 9. Transparent pro-active & supportive Government policies. 10. Change in education system to prepare Scientific, Engineering and highly skilled work force.

FACTORS FOR INDIAN RUPPEE FALLING IN THE INTERNATION MARKET ARE:

1) Starting with the global factors such as the on going Russia-ukrain war, soaring crude oil prices and tightening of global financial conditions are among the key reasons for the weakening of the Indian rupee against the dollar... Analysts agreed the currency is being buffeted from multiple fronts globally.

2) The Indian rupee has come under intense selling pressure in recent weeks due to a perfect storm of global headwinds which analysts say will continue to pummel the currency in the months ahead.

3) Now talking about how it's going to affect our economy..... As money flows out of India, the rupee-dollar exchange rate gets impacted, depreciating the rupee. A falling rupee puts pressure on the already high import prices of crude and raw materials, resulting in higher import inflation.....

4) Measures to improve the value of money are.... Sell foreign exchange assets, purchase own currency.Raise interest rates ...... reduce inflation (make exports more competitive.Supply-side policies to increase long-term competitiveness.

When it comes to making investments, many tend to think of more traditional asset classes, such as publicly-traded stocks and bonds. This is partially because, historically, investors didn’t have easy access to alternative asset classes, such as private equity. But, times are different now and many alternative asset classes are available to accredited investors through online investment platforms, such as equitibee...This unique access to alternative asset classes allows you to diversify your portfolio and further protect your investments from downside risk. There are alot many things which we can do for indian ruppee to be appreciated.

NAME- ARYAN SANGHVI

STD- SYBA

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ROLL NO -57

ID CARD NO 1220210721

What is the meaning of"falling rupee"? - A fall in the rupee against dollar in the forex market means that the Indian currency is weakening.(this means while importing from U.S or other countries India have to pay more becoz payment is done in dollars ... In simple words less import cost more.) Major Reasons:- Rise in crude oil prices . Russia-ukraine war. Foreign investors withdrawing from Indian market & monotonous environment of domestic business. Global factors such as ongoing Russia-ukraine war , soaring crude oil prices and lightening of global financial conditions are among the key reasons are the among key reasong of weaking of the Indian rupee against the dollar .Indians exposure to to high energy prices has. Had knock-on effects on the currency , with the rupee falling more that 5% against the dollar year-to-date. The Indian rupee has came under intense selling pressure due to a perfect Strom of global headwinds . Major Impacts:- Inflation:- A weaker rupee will directly impact India's trade balance & inflation through higher cost of imports . GDP:- weaker rupee will make there imports more expensive, which will have a short term negative effect on GDP as whole. Measures:- Reduce inflation competitiveness. (If possible)Sell foreign exchange assest. Policies .

1)The foremost reason for the currency's downfall is the money being pulled out from the Indian economy by foreign portfolio investors. 2)Another reason for the rupee's fall is the rising dollar index. If the index rises, the value of other currencies falls 3)Impact of war: The fall in the value of the rupee can also be attributed to a rise in the prices of commodities due to the Russia-Ukraine war. Russia and Ukraine are major suppliers of items like oil, wheat, and fertilisers. With much of the supply being halted due to the war, the prices have gone up, and India’s import bill has shot up. Measures to improve value of rupee: The RBI has been taking several steps to stop the depreciation of the rupee. It has removed the cash reserve ratio and statutory liquidity ratio limitations on foreign cash non-resident bank . It has also allowed a higher interest rate on the NRI deposits. The central bank may buy back the bonds from the market to increase the rupee supply. This might help it bring down the value of the dollar. Also, one of the other ways is to suck the liquidity out of the market. This can be done by hiking the interest rates. If the bank interest rates are higher, people tend to deposit more in their banks, reducing the liquidity.

Reasons why rupee value is falling in the international market-

Ukraine-Russia war has disturbed energy trade{ crude,gas trade} sansation imposed on Russia/Iran and Venezuela who are major exporter of crude oil and gas has created scarcity of crude supply gas supply leading to sharp rise in the prices of the same, increasing prices of fuel increases the outflow of foreign currencies as we need to pay more for the import.

Ukraine war has also resulted in obstacles in supply of food products for example 80 percent of the wheat requirement is fulfilled by Ukraine, due to Russian blockade and war this supply was disturbed till now this led to increase in the prices of food grains and food products which in turn increase the outflow for foreign currencies.

Since covid the supply chain of raw material and finished products was broken. This led to reduction in supply and increase in the demand causing the prices of raw materials to rise and in turn causing rise in final product .

One of the major cheap price exporter China ;Chinas economy is slowing down due to their banking sector defaults/fraudster this in turn has reduced their supply of raw materials and Final products. Revival of the US economy led to increase in rate of interest for deposit etc. has led to migration of other international investment from immerging economy’s like India to USA this has strengthen the us dollar.

Rise of domestic inflation in India due to increased crude prices and disturbed supply chain this has led to widespread price rise causing devaluation of purchasing power of rupee.

Immediately after covid the RBI has taken measure to increase the liquidity in the market to boost economy however this with the reasons above led to rise in inflation now to control the inflation RBI has increased interest rates this has reduced liquidity in the market and less funds are available for investment in the market and the cost of lending of money has increased.

Foreign investment funds have felled out of the Indian market to markets like US which offer better returns.

Impact on the Indian economy-

Investment will reduce, slowing down the growth , enhanced import bills will lead to greater outflow of foreign currencies out of the country increased level of unemployment widespread price rise, social unrest.

Ways to improve the value of rupee-

· Increase exports

· decrease imports

· built up strong foreign reserve in dollars

· moderate and regulate inflation

· proactive RBI measures

· consistent economic policy

· political stability

· enhancing production and supply of good and service

· generating more employment

· reducing the reliance on US dollar based trade by encouraging country specific currency trade agreements such as rupee ruble trade agreement with Russia

Fall of the Indian Rupee in International Market.

-The rupee has plunged nearly 6.5% since the start of the year and the fall is mainly due to high crude oil prices, a strong dollar overseas, and foreign capital outflows. A stronger dollar and weak domestic growth prospects is leading investors to flock to safe greenbacks, ditching riskier Indian assets. The US dollar has been strengthening as global investors piled on the safe-haven currency with the US Federal Reserve tightening monetary policy more than peers. Risk aversion in global markets means funds are now flowing back to the US.

Impact on the Economy:

-Since India mostly depends on imports, including crude oil, metals, electronics, etc. the country makes payments in US dollars. Now if the rupee is weak, it has to pay more for the same quantity of items. In such cases, the cost of raw materials and production goes up which gets passed on to the consumers.

On the other hand, a weakening domestic currency boosts exports as shipments get more competitive and foreign buyers gain more purchasing power. However, in the current scenario of weak global demand and persistent volatility, exporters are not supportive of the currency fall.

The falling rupee's biggest impact is on inflation, given India imports over 80 per cent of its crude oil, which is the country's biggest import. The global crude prices have sustained at over $100 a barrel since Russia's invasion of Ukraine in February this year. High oil prices and a weaker rupee will only add to inflationary pressures in the economy.

Measures:

1. Export more goods and services

2. Reduce Imports drastically

3. Have Current and Capital account surplus

4. Go for import substitutes

5. Popularise RuPay (indigenous card) where in Foreign Exchange outgo is not there.

6. Attract more tourist

7. Attract more and more FDI with condition that there will be moratorium for remitting profits outside India for at least 5 years.

Why Indian rupee is falling in international market?

The value of the Indian rupee to the US dollar works on a demand and supply basis if there is a higher demand for the dollar the value of the Indian rupee depreciates and vice versa

In July Indian Central Bank put in a place mechanism for international trade settlements in the Indian rupees the measures allowed traders to bill, pay and settlement imposed and exports using the Indian rupees which will help a long-term goal to international the Indian currency

On Wednesday the rupee hit a record low of 79.03 against the US dollar it has decline nearly 6% scenes January this year

HOW IT GOING TO IMPACT OUR ECONOMY

India mostly depends on import including crude oil metals electronics etc the country makes payment in US dollars now if the rupee is weak it has to pay more for the same quantity of items in such cases the cost of raw materials and production goes up which gets passed onto the Cunsumer

On the other hand a weaking domestic currency boost export as shipment gets more competitive and foreign buyers gain more purchasing power however in the current scenario of weak global demand and persistent volatility exporters are not supportive of the currency fall

A waeker rupee will make these imports more expensive which will have a short-term negative effect on domestic production and GDP as a whole

The biggest impact of a weaking rupee is inflation given India imports more than 8% of its crude oil

SUGGEST MEASURE TO IMPROVE VALUE OF RUPEE

Exports more goods and services reduce imports drastically have current and capital accounts surplus go for import substitutes attract more tourist attract more and FDI with condition that there will be moratorium for remitting profit outside India for at least 5 years political stability is ensured make efforts to make the country a develop nation from developing nation

The fall in the rupee against the dollar in the forex market means that the Indian currency is weakening. This means, that while importing from the united states or any country, india will have to pay more because the payment is done in dollars i.e, less import cost more.!

. SECTORS BEING AFFECTED

India imports 20.96 percent of the GDP. It includes mineral fuels, oil, mechanical appliances, jewellery and many more. As all these imports are done in dollars so the weakening of the indian currency against the dollar is overall effecting these sectors.

The one more main reason in fall of rupee is the

rise in :- 1. Crude oil prices

2. Foreign investors withdrawing money from the indian market.

3. Monotonus environment of domestic

business.

HOW WILL IT EFFECT YOU AND MAJOR IMPACT ON OUR ECONOMY.?

The devaluation of the rupee will make imports costlier. Since, the rupee has weakened against the dollar, importers will now pay more for the same quantity and price. People who are aiming to study abroad during this time would see an increase in the amount of the fees. People residing abroad who send money to their families in india would cost more in term of the rupee. On the other hand, the depreciation of the rupee makes exports cheaper.

The falling rupee's biggest impact is on inflation given india import over 80 percent of its crude oil, which is the country's biggest import. The global crude prices have sustained at over $100 a barrel. Since, russia's invasion of ukraine in february this year. High oil prices and a weaker rupee will only add to inflationary pressure in the economy.

. MEASURES TO IMPROVE VALUE OF RUPEE

For getting hike in export its good, so india should focus on producing more furnished goods to export like US market. Even china is also under pressure of lockdown and covid and ukraine russia in another tension. Now its high time and good chance to become global exporting power in the world and in near future becoming powerful economies among all.!

Why Indian rupee is falling in international market: Indian rupees is continuously depreciating up to it's historic low. i.e.,1 dollar= 80 rupee. This fall is bad for the economy and it comes at a time when we are fighting inflation. Indian Rupee has depreciated 25% since 2014 against dollar. all major currencies around the world are falling. Not only Indian rupee but also every other currency has taken a big hit by US dollar except Chinese Yuan. why Chinese Yuan is not depreciating like other currencies. Because China has done record high level exports last years. Due to this China has done great against dollars.

Why is it going low ?

1. The geopolitical tension arising due to the Ukraine-Russia conflict. The crisis has pushed up the price of essential commodities worldwide. Crude oil prices are also soaring high and India is witnessing a sharp rise in its import bill.

2. India’s forex reserves have dropped down significantly. Forex reserves dipped by $2.695 billion to $597.728 billion, according to the Reserve Bank of India's weekly statistical supplement

3. A lot of overseas investors have pulled out a huge amount of money from Indian markets. This has affected the market sentiment and decline.

How is it going to affect us ?

1. Imports will be expensive and exports will be cheaper.

2. Oil imports will become more costly.

3. Education in foreign nations will become really expensive.

4. Travelling international will become expensive.

5. Increased interest rate on loans.

6. Inflation.

7. VOLATILITY IN STOCK MARKETS.

Measures to be taken:

1. Reducing oil import: investment in methane hydrate(which will be the biggest source of energy in next decade and India has plenty of it).

2. Fiscal stimulus to boost foreign tourism business resulted in increased inflow of foreign exchange.

3. Import has to be reduced/curtailed

4. Export must be increased

5. Import duty on non essential items be increased

6. Barter trade i.e. import should be in Indian Rupee so that there is a matching import by the same country from where imports are made.

Measures to improve value of rupee:

Measures to improve Indian rupee: •Stop black marketing •Stop corruption •Ban on Import Items We need to stop importing items from other countries, as importing from other countries lead to more taxes to be borne, more customs, and price of the same will be double or triple than the actual price. At the moment India depends on oil and other raw materials which are imported from other countries. India should not buy any low value items or products from other countries which has no added value to Indian Markets. •Produce large quantity of Indian goods, and export them to the right country, where their is shortage of that goods. •We should improve inflow of foreign currency in India by improving the tourist spots and maintaining them properly to attract foreign tourists. India has some of the most beautiful places in the world and it is important to maintain their sanctity. •Increase our export trades by producing higher quantities of Indian goods that are in demand abroad. We also need to start manufacturing or producing new stuff that is in demand abroad. •Indian citizens should themselves feel responsible and try to purchase only Indian goods. Wherever possible, we should avoid buying stuff from abroad.

Impact on our economy: The value and performance of a currency have a huge impact on its economy, as the currency performs well the economy performs well, and vice-versa. A fall in the value of the Indian Rupee badly affects the economy as the rate of inflation increases in the country. However fall in the currency improves the exports of the nation as it becomes cheaper for foreign buyers, but as per the current scenario, there is a huge reduction in the overall global demand. Thus the total exports from the nation also decreased contributing furthermore to the fall of the Indian rupee. With the fall in the Indian rupee, the MSME sector gets badly impacted and thus resulting in job losses and increases unemployment.

Why Indian Rupee is falling in international market?

On 19 july the lndian rupee hit as low all time exchange rate of 80 against the US dollar in early trade the government said that it's value had fallen by 25% since 2014. The country is already grappling with high inflation and weak growth now this fall of the rupee has become a cause of concern and a challenge for policymakers. The rupee fall had been mainly due to a rise in crude oil prices a strong dollar overseas and persistent foreign capital outflows the backdrop of heated inflation prolonged by lockdowns in China the monetary tightening campaign of the central banks and supply chain disruptions caused by the Russia Ukraine war have led to the steep fall of the rupee against the dollar. In simple terms, a high import bill leads to a depreciation in the value of the rupee as the payments are made in US$, reducing the availability of dollars in the domestic economy.

Reasons:

The biggest one by far is the flow of capital to the US.The US is usually an exporter of capital. It imports more than it exports. Its rich citizens invest abroad to increase the returns on their portfolios. Immigrants working in the US send money back the home countries.

A country receiving significant capital from the US via exports, foreign investment (both FII and FDI), remittances tourism, etc, can run a deficit in their current account. This means it can import more than it exports. They can do this due to the cushion offered by all the money flowing in.India has been a huge beneficiary of this trend. It has historically manged to maintain a current account deficit within a narrow range since 1991. It has not had too much of a problem funding it.

Of course a natural outcome of this is a steadily depreciating currency. This is not a problem in good times when money is flowing in. In fact even if money is flowing out, it's still not a problem as long as the currency is stable and the current account deficit is low.

This was the case with India in FY22. The current account deficit was low at 1.2% of GDP. The rupee was relatively stable. FDI was flowing in. The growth in exports was strong.

Speaking to Business Standard, Rahul Bajoria, Chief Economist, India and the Antipodes, Barclays Investment Bank said rupee is not being singled out in terms of weakness. Chinese yuan, Korean won and Japanese yen fell more than rupee in last 3-4 months, he said adding that several Asian currencies have weakened across the board.

The biggest impact of a weakening rupee is on inflation, given India imports more than 80% of its crude oil, which is India’s biggest import

Measures to be taken:

-We need to start manufacturing or producing new stuff that is in demand abroad.

-Indian citizens should themselves feel responsible and try to purchase only Indian goods. Wherever possible, we should avoid buying stuff from abroad.

-We should encourage more FIIs to invest in Indian Stock Market.

-We should improve inflow of foreign currency in India by improving the tourist spots and maintaining them properly to attract foreign tourists. We should promote Indian tourism on a global level as much as possible.

-We can make use of the Indians who are settled in different countries of the world. India has some of the most beautiful places in the world and it is important to maintain their sanctity.

-We should bring back all the black money of corrupt politicians and businessmen from Swiss bank accounts. This money should be utilized for the betterment of our own people as well as for innovation.

During pandemic we have lost many jobs,money,share market crush not only in domestic market but also in international market as well and that have affected the economy. As rupees is falling day by day and international market's rupee is falling due to the rise in i)CRUDE OIL. WTI( west taxes intermediate) is 90.57(-0.21%), Brent crude oil is 96.57(-0.20%), murban crude oil is 96.37(+1.96%), and natural gas is 7.675( +1.13%). ii) FOREIGN INVESTORS- Foreign investment invest to the domestic companies and that benefits go to the another part of the country by the Foreign investors. Crude oil also continues to be risen the levels (it imports more than 80%) and foreign investors has pulled out many money's in the year 2009-2021. Yes, definitely it will affect economy because the loss of jobs there will be loss any how. A weaker rupee will make these imports more in risen amount, which will affect on domestic products and gross domestic on a whole. There will be no employment in the country,no education and somehow it will affect the economy because in Economy market 'PROFIT IS THE MAIN THING'.

PROFIT

Due to that the biggest impact of rupee is Inflation (increase in prices fall in purchasing the value of money).To improve the fiscal and monetary authority we must interact with the people's for knowledgment about the fields. Today's world have digital media,trade and finances, migration and worldwide communication (interaction), competitions, today's generation must have more innovative solutions eg- i)through digital media or technologies there are many ways to improve the economy and make success.ii) To improve the international economy or domestic market their should be co-ordination amongst peoples. Who are managing the systems, about funds, accounts, who much to be invest and how much funds or shares are invested, how much profits we did today etc. These many solutions and measures I will suggest to improve the economy. Thank you!

Why Indian is Rupee falling?

The major cause that should be held accountable for the fall of the Indian Rupee is Inflation. Inflation is a rampant issue now throughout the world in almost all countries. This is caused by money printing by Central Banks of all countries during the Pandemic. The US just hit 9.1% inflation last month levels not seen in the last 40 years. There are $3Trillion dollars in Handout and stimulus money handed out to small businesses immediately after the pandemic to keep things going. This excess money is the root cause of high demand. Of course, there is a supply issue too. Gasoline prices are up 40%, Food energy and rent up 35%. Most countries are trying to restrict the money supply by increasing the Interest rate which will increase the risk of recession. So, it’s going to get ugly everywhere, especially in the west. If there is more money in the economy, i.e., consumers have more money in their hands, they will want to buy more goods. When demand increases, prices will also go higher, thus resulting in inflation.

Impact on economy:

A weaker rupee will make these imports more expensive, which will have a short-term negative effect on domestic production and GDP as a whole. Given that over 80% of India's crude oil is imported, inflation will be the most affected by the rupee's decline. While a weak rupee raises the price of imports, it also has some advantages. In theory, it increases the competitiveness of our exporters. In addition, a significant portion of India's major exports, including gems and jewelry, petroleum products, organic chemicals, automobiles, and machinery, are imported. The cost of production for exporters will increase due to rising commodity prices brought on by supply shortages, which will have an impact on their margins. As a result, industries like electronics where there is a high import intensity may not see an increase in exports. It is true that labor-intensive export industries like textiles and service sectors like IT will profit.

Measures to improve the value of rupee:

The decision by the government to allow foreign investors to directly invest in Indian equity could bring some capital flows and have a positive impact on the economy and the rupee.

A weakening rupee is needed to increase the competitiveness of the domestic industry is valid since exports tend to benefit from a falling exchange rate. Government should tap this opportunity to increase exports.

Methanol blending to 20% petroleum can decrease the import receipts leading to a strengthening of the rupee.

India needs to convince the USA regarding its Import of oil from Iran as India can trade with Iran in Indian rupee instead of the dollar, leading to a strengthening of the Rupee.

Creating new jobs and employment will increase the growth of the economy. Tapping the potential of demographic dividend and the MSME sector to export will strengthen the Indian economy and the belief of foreign investors in the Indian market.

Dear students you are required to discuss on the topic. I can see all of you have only putforth their view but you can comment & should discuss on views published by your friends here. Then it becomes Arthmanthan in true

From around Rs. 26 in January 1992 to about Rs. 77 in March 2022, the value of the rupee has decreased. The rupee has lost value versus the US dollar on average by 3.7% a year. The steady depreciation of the Indian rupee is never a major worry, though. However, it is a worrying situation if the rupee is falling quickly. The rupee's depreciation of more than 3.3% during the previous three months is quite alarming in that setting. Additionally, there are two main causes of the rupee's decline: 1. Foreign investors are pulling out of Indian markets in response to the US Federal Reserve's move to raise interest rates there and the conflict in the Ukraine and Russia. They receive money in rupees when they redeem their investments in India. However, they must exchange their rupee-based holdings for dollars. As a result, they will purchase dollars in exchange for rupees. As a result, demand for the rupee decreases and demand for the dollar increases. As a result, the Indian rupee loses value in comparison to the US dollar. 2. Increase in dollar purchases as a result of the rise in oil prices: India is a net buyer of crude oil. Indian businesses must spend more money because the price of oil has increased globally by more than 60% since 2022 began. There will be more demand for dollars, which will cause the rupee to weaken.