2. CONTENTS:
REASONS FOR FALLING VALUE OF INDIAN
IMPACT OF FALLING INDIAN RUPEES.
HOW CAN INDIA CONTROL THE VALUE OF THE
IN THE INTERNATIONAL MARKET?
3. REASONS FOR FALLING VALUE OF.
High import and less import.
More depend on the Foreign investment
Inflation .
Less productivity.
Political conditions
4.
5. IMPACT OF FALLING INDIAN
Higher interest rates.
Indian government's burden of repaying and
servicing foreign debt.
Another problem is that it might discourage foreign
institutional investors.
Costlier of imported products (Inflation)
Slower growth rate.
Costlier of overseas education.
6. HOW CAN INDIA CONTROL THE VALUE OF THE
RUPEE IN THE
INTERNATIONAL MARKET?
7. Normally, the RBI uses its Monetary Policy to
defend the rupee's value. Short-term interest rates
changes do impact the value of the rupee against
other currencies. But, the RBI has mostly used the
policy to stabilize internal conditions, like steps to
control rising inflation.
Encourage the domestic investor.
Increasing the gross domestic production.
Increasing the exports.