India's dream of becoming the world's economic powerhouse is fading away!

At the moment, one US dollar is equal to 86.54 Indian rupees. A few days ago, this figure reached 87 rupees. Why is this happening?

At the time of independence, in 1947, the value of the Indian rupee was equal to one US dollar. But over time, the impact of foreign debt and war has given a big blow to the value of the rupee. The 1962 China-Pakistan war and the 1965 Pakistan war caused the rupee to depreciate to 7.57.

During the financial crisis of 1991, India could only maintain foreign exchange reserves to cover three weeks of imports. At that time, the value of the rupee fell to 17.90 rupees against the dollar.

In 1993, a market-determined currency system was introduced. After that, the rupee was relatively stable against the dollar between 2000 and 2010. But in recent years, the rupee's decline has become worrying again.

Analysts say there are several major reasons behind the weakening of the rupee:
International investors are withdrawing from the Indian market. The supply of foreign exchange is decreasing due to India's relatively low exports. High-priced imports are putting pressure on the reserves.
The Reserve Bank is trying to manage the situation. Foreign exchange reserves fell from $700 billion to $640 billion between September and December.

If India wants to rise to the top of the world economy, it will have to increase exports and keep inflation under control. Although the Reserve Bank's policies are maintaining some balance, a long-term solution is needed.