The Exchange Value of the Indian Rupee: 5th T.A. Pai Memorial Lecture

Brahmananda, P R (1988) The Exchange Value of the Indian Rupee: 5th T.A. Pai Memorial Lecture. Discussion Paper. TAPMI, Manipal. (Unpublished)


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Indian rupee no doubt has been by, and large depreciating with respect to, the major currencies though it is maintaining a nearly stable link with the U.S. dollar for the obvious reason that our Trading rivals are also doing the same. The new suggestion is that India should unilaterally and aggressively bring down its exchange value by a big bout. The probable arguments can be imagined. India's debt ratio to GDP is rising. The Seventh Plan has got into a severe Balance of payments crunch. The Indian rupee domestically has fallen at a higher rate than the dollar. The Indian economy is not in position to control its inflation rate. India’s exports not rising at a higher rate, than the real GDP. The imports of bulk commodities are growing and no economy in rate of growth of absorption of petroleum products and other imports has occurred. The remittance inflows and deposit inflows as also equity inflows from non-residents have remained static and are even decreasing. Government budgetary deficits are rising in terms of their ratio to GDP. Devaluation would administer the necessary shock to the Indian economy and make it realise the need for utmost prudent fiscal and monetary management. It will so jolt the economy as to prevent it from going into further debt. On the positive side it is argued that our exports would get a big push, Remitter of funds will increase, etc.

Item Type: Monograph (Discussion Paper)
Uncontrolled Keywords: exchange rate of Rupee; exchange value-Indian Rupee
Subjects: Economics
Economics > Indian Economy
Economics > Economic Planning & Development
Finance > Foreign Exchange
Divisions: Finance and Strategy
Depositing User: Mr Ramesh Kamath
Date Deposited: 28 Oct 2018 12:37
Last Modified: 28 Oct 2018 12:38

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