Currency depreciation - causes and its impact on Indian economy
Rupee depreciation has been the hot subject in current economic scenario. We are experiencing a tough time with rupee depreciation every day. Current economic context created anxious moments to various industrial sectors in India. On 1st Dec, 2013 the value of Indian rupee stood at 62.44. The experts in the field perceived the situation in different manners. Some considered it as highly depressed and threatening environment; some others considered it as an opportunity in disguise. There are various positive and negative impacts which are being predicted by experts in the fields. Rupee depreciation, no doubt it will affect upper and lower sectors of the economy. This spectacular decline of rupee value will loss India’s confidence in its growth prospect too. RBI and government is taking various measures with the objective of making a stabilized floor for Indian rupee. Mr. Raguram Rajan, RBI Governor, has shown reflections of hope in the present crisis. This paper tries to explore the causes and impact of rupee depreciation on the Indian economy and also tries to review various measures taken by RBI and Government to get over the present crisis.