When each of you were young you would have been least bothered by what value Rupee was to Dollar but now when you slowly grow up you know of its extreme importance to you and to the economy of India. Around two years back the rupee to dollar ratio was 45 rupees =1 Dollar (approximately). Which itself shows that India is not a very economically stable country. In light of recent events In India and the U.S.A the rupee to dollar ratio shot up. The rupee to Dollar ratio 65.56 = 1 Dollar (approx). There was 20 rupee gain in the dollar ratio but however small an amount you think it is, it is a great deal for our country as it affects our international trade.
The Indian government had to sell the dollars stashed away in federal reserves just to decrease the ratio by 2.30. The government or more specifically our finance minister has taken a few reforms to stem the growth of the fallen rupee by which they are going to mediate the demand of non essential imports which are of high costs and they plan on enhancing the capital flows in the country because the only way the value of rupee will increase is if people invest in it or else the value will go down. The value of one pound has shot up to 105 rupees. So you can see while all other economies are gaining we are depreciating which may cause a financial problem for the whole country and we might be in the same situation in which USA was for the past 5 years.
C. Viswesh Kumar of XI - B
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