why rupee is declining Essay

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CAUSES OF DEVALUATION OF INDIAN CURRENCY, ITS IMPACTS, AND SUGGESTIVE MEASURES
SUBMITTED TO: MATT. O’CONNOR

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CAUSES OF DEVALUATION OF INDIAN CURRENCY, ITS IMPACTS, AND SUGGESTIVE MEASURES
SUBMITTED TO: MATT. O’CONNOR

CONTENTSINTRODUCTION
Background 2
Objective 3
HISTORY OF DEVALUATION IN INDIAN CURRENCY AGAINST USD DOLLAR 4
CAUSES OF DEVALUATION IN INDIAN RUPEE AS COMPARED TO USD DOLLAR 5-6 IMPACTS OF DEVALUATION OF INDIAN RUPEE ON THE INDIAN EONOMY?
WHAT STEPS SHOULD BE TAKEN TO STOP FALL OF RUPEE?
CONCLUSION
REFERENCES
INTRODUCTION
Background
The origin of the word "rupee" is found in the Sanskrit rūpya "shaped; stamped, impressed; coin" and also from the Sanskrit word "raupya" meaning silver.
In 712 AD, the Arabs conquered the Indian province of Sindh and brought their influence and coverage with them. By the 12th Century, Turkish Sultans of Delhi replaced the longstanding Arab designs and replaced them with Islamic calligraphy.
This was heavily influenced by the Afghan Sher Shah Suri (1540 to 1545) who introduced the silver Rupayya or Rupee coin. The original rūpaya was a silver coin weighing 175 grains troy (about 11.34 grams). The silver coin remained in use during the Mughal period, and later during the British rule. In 1866, when the financial establishments collapsed, the control of paper money also shifted to the British Government. In 1867, the Victoria Portrait series of bank notes was issued in honour of Queen Victoria and later many emperors followed suit.
After gaining its independence in 1947 and becoming a republic in 1950, India's modern Rupee reverted back to the design of the signature Rupee coin. The symbol chosen for the paper currency was the Lion. In 1996, the Mahatma Gandhi Series of Paper notes was introduced. Finally, rupee sign was presented to public by the government of India on 15 July 2010.

OBJECTIVE
The report was written for the students who are interested in finance or marketing. The article explains why Indian currency is declining year by year as compared to us dollar and what will be the impacts of this reduction on Indian economy and what are the possible solutions to raise the value of money.

HISTORY OF DEVALUATION IN INDIAN CURRENCY AGAINST USD DOLLAR
Year INR/USD Year INR/USD Year INR/USD Year INR/USD Year INR/USD
1947 1 1981 8.68 1990 17.50 1999 43.12 2008 43.41
1973 7.66 1982 9.48 1991 22.72 2000 45.00 2009 48.32
1974 8.03 1983 10.11 1992 28.14 2001 47.23 2010 45.65
1975 8.41 1984 11.36 1993 31.26 2002 48.62 2011 46.61
1976 8.97 1985 12.34 1994 31.39 2003 46.60 2012 53.34
1977 8.77 1986 12.60 1995 32.43 2004 45.28 1978 8.20 1987 12.95 1996 35.52 2005 44.01 1979 8.16 1988 13.91 1997 36.36 2006 45.17 1980 7.89 1989 16.21 1998 41.33 2007 41.20 The table above illustrates history of devaluation in Indian currency. In 1947, the value of rupee was equal to that of dollar. Major fall occurs in 1973 when rupee plunged to Rs.7.50/$ whereas from 1966 to 1980 it stayed constant. After that, rupee started to slowly decline from Rs.7.89/$ in 1980 to Rs.17.50/$…