Rupee is kneeling before the dollar, yet why is the world surprised to see India’s progress: – ..

News India Live, Digital Desk: For the last few days you must be seeing the same headline in newspapers and on TV.“Rupee at historic low”, “Dollar becomes more expensive”, “Indian currency headed for ICU!” Anyone can get scared after hearing this. We have this set in our mind that if the country’s currency is falling, it means the country is going into trouble.

But wait! There is another aspect of the story which will surprise you.

While on one hand the rupee is falling against the dollar, on the other hand India’s Economy Galloping like the fastest horse in the world. It sounds strange, doesn’t it? That when the coin is weakening then how is the market and GDP strong? Let us solve this puzzle in very simple language.

1. Is the rupee weak, or has the dollar become ‘Baahubali’?

First of all it is important to understand that this is not just the weakness of the rupee. America’s dollar is currently sitting on steroids. In America, the interest rates and their policies are going on in such a way that the money from all over the world is being pulled into dollars.

Not only India, Japan’s Yen, Britain’s Pound and Euro – all are asking for water against the Dollar. Meaning, the fault is not so much of our player (rupee) as of the power of the opponent (dollar).

2. Why is the economy ‘booming’?

Now coming to the good news. Despite the falling rupee, India’s domestic system is very strong.

• Our own market: The world is scared of recession, but people in India are shopping heavily. Cars are being sold, houses are being built, and record sales are being made during festivals. Our ‘domestic demand’ is so strong that we are not much affected by external fluctuations.
• Manufacturing: The effect of ‘Make in India’ is now visible. Work is going on rapidly in factories.
• GST and Tax: Government’s earnings are breaking records, due to which money is being spent on infrastructure (roads, bridges).

3. Should you worry?

Now you might be thinking, “Brother, all this is fine, but how will it affect my pocket?”

The truth is that the falling rupee has two sides:

• Loss: The things we import from outside (like crude oil, expensive electronics, studying abroad) can be expensive. This may increase inflation slightly.
• Benefit: There is profit in what we sell (export). Our IT companies, textile and pharmaceutical companies earn huge profits due to the expensive dollar, which brings money and jobs to the country.

4. What is RBI doing?

We have a strong ‘goalkeeper’ standing behind us called the Reserve Bank. RBI has such huge reserves of foreign exchange that it will not allow the rupee to sink completely. He’s just balancing the market a bit.