Vijay's Vision

DEPRECIATION OF INR AGAINST USD – A CRITICAL ANALYSIS -*Dr. S. Vijay Kumar ABSTRACT Money is an important powerful tool which was created by man thousands of years ago. As Alfred Marshall a famous economist said “Money is a pivot around which the whole economy clusters”. India continues to be the fastest growing major economy in the world, with an estimated GDP of 6.4% in 2026. The appreciation and depreciation of the rupee are strongly influenced by the change in demand or supply for the rupee and the dollar. Therefore, the rupee will appreciate if there is an upsurge in its demand and depreciate if demand lessens. The depreciation of the Indian Rupee is not merely financial statistics—it reflects deeper economic shifts driven by inflation, trade deficits, foreign investment flows, and macroeconomic policies. While a weaker rupee can boost exports and remittances, it also raises import costs, fuels inflation, and impacts investor confidence. Striking a balance between...

Depreciation of Rupee: its Impact on Indian Economy (My Guest Lecture on "Devaluation of Rupee & Its Impact on Indian Economy" to M.B.A Students at Vaag Devi PG College, Hanamkonda on 9/11/2013) -Dr. S. Vijay Kumar In a fixed exchange rate regime the term ‘devaluation’ is used. It means a deliberate downward adjustment of a country's official exchange rate by its government i.e. central bank (RBI in India) relative to other currencies. Where as in floating or fluctuating exchange rate currency's value is allowed to fluctuate according to the foreign exchange market. In this, it is known as depreciation. There are two implication...