Topnewspro.com The “Indian Currency Fell Nearly 11% Against Us Dollar In Last 1 Year” news has been added by Shekhar.
In the last 1 year, the Indian currency has decreased to 11% as compared to US dollar. The Indian currency has fallen to its lowest recently. The depreciation of the domestic currency is of no good for the economy of the country and especially for a developing country like India. As we all know that India has a huge dependence on import and hence, falling currency leads to inflation in India. The depreciation of Indian currency makes it one of the worst performing Asian currencies.
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The fall of the Indian currency is due to the overdependence on import, foreign education, and travels. The depreciation of the Indian currency had a major impact on the prices of petrol and diesel. It has been seen that there is a huge price hike on petrol and diesel by 13.99% and 23.04%. The increase in the prices of petrol and diesel may make the situation worse. It is being expected that the value of the Indian currency will be even lower in the future against the US dollar if we do not control our import. The export of Indian good should rise up in order to control the deficit. The weak currency is making foreign travel, education, import more expensive than it was before. The fall of Indian currency has made it worse for the government and the consumer as it gave rise to the prices of the global crude. The equity markets Sensex and Nifty marks at 38,700 and 11,700 due to this fall. One of the major reason for the fall of Indian currency in such a disaster rate against the US dollar is due to the huge demand for the US dollars i.e. more import and less supply of US dollars in India i.e. less export.
Let us see why we demand more dollars:
- The increasing demand for crude oil, CNG, LPG is imported every year. We do not take special care of our own crude oil and gas reserves. We also have poor transportation facilities, power supply, and railway diesel engines which lead to import.
- Many rich Indians require dollars for conducting business meetings as well as vacations in foreign countries.
- Many Indians also require dollars who wants to study abroad and has a dream to settle there.
- We import almost 70 billion worth of goods from China which includes things which can be manufactured in India only but we cannot do so due to the loose tax and licensing structure in India.
- We also import high price technologies such as iPhones, i-pads, laptops, jewelry and many more for our consumers instead of manufacturing them in our own country India.
- We import equipment related to defense for which we buy billions of dollars.
- The corporate companies take dollar loan instead of rupee loan in order to get cheaper interest rate abroad.
- We also import fruits, vegetables, pulses, food grains for the consumption of rich consumers in Indian.
- Our Indian cinema requires a dollar for shooting abroad. It also gives rise to black money
- The export of Indian products is reducing day by day due to poor quality, innovations, and designs.
- Tourist traveling in India is also less due to lack of promotion.
- In the world of internet, online shopping has become more available to people where people are buying products from abroad which requires more foreign currencies presently.
- Many drugs are also being imported which are required for several diseases instead of manufacturing them in India.
- Our mineral export is also suffering due to a ban on mining.
So we can see that India is 70% dependent on dollars. Until and unless we control our demand for dollars i.e imports of jewelry, equipment, clothes, etc Indian currency will keep on depreciating drastically against US dollars. Due to inflationary rise is the price level the poor people are suffering more than the rich. The rich people are enjoying their life inside and outside India whereas, the poor people are paying for it.