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  • Category: Miscellaneous

    Is it true that during independence time the value of one rupee was equivalent to one dollar?

    If this is the fact than what has led to so much depreciations throughout years to till date? Today we find the huge cry from the opposition parties because of huge differences in the value of Rupee in comparison to the Dollars but then who is responsible for such situation than? In the meantime even a small proportion of changes in the Rupee value downward cost the economy in a big way. My question is that about why the consecutive governments were so much helpless in order to correlate both the currencies in a balanced way? In addition, how far the previous governments are responsible for the present disparity within the Rupee & Dollar?
  • #654349
    How long we blame the previous governments for each and everything? BJP led NDA was also in power earlier. One of the reason for huge cry because of unrealistic promises made by the current government in 2014. Young Indians believed it blindly and gave simple majority after 2 decades. Finally they got disappointment and showing their anger now whenever they get a chance.

    Talk less and do more is always better than Talk more and do less.

    Thanks,
    Suresh.

  • #654350
    No blame to the previous governments but just a curiosity about how this couldn't be possible but yet same is expected from the present government. I don't feel that there should be any objection?

  • #654351
    Usually developing countries would have higher inflation than developed countries. Higher inflation will lead to currency depreciation because of less exports, higher interest rates.
    Thanks,
    Suresh.

  • #654352
    I think the sole reason for the same rate of conversion back then was due to wartime chaos. USA had lost a lot in 1940s. Large corporations of that time, even the Ford automobiles were not doing so well. So USA must have had its all time low economy then. Even us Indians saw a great power shift. But later, being a newly independent country, our resources went into building while US was developing. Our archaic technology and poverty didn't do us any good and I really think that five year plans are the only things that saved us from being furthur impoverished. To be honest we did quite well for ourselves. There were bunch of other countries that gained independence in 1950s but we are far better than them. We did a good job.
    The stronger a light shines the darker are the shadows around it.

  • #654353
    The Indian rupee was pegged to the British pound at a rate of 1 rupee = 1 shilling and 6 pence or 13 1/3 rupees per British pound in 1947. Based on the ratio of the value of the British Pound and the U.S. Dollar, at that time one dollar equals 3 rupees. The reasons for a rupee losing its value is the fiscal deficit of India. The crude oil consumption, the increase in gold prices, the increase Chinese imports, the increase in the number of foreign tours by Indians, imported cars and other goods are responsible for this diminishing of rupee value.
    My personal opinion is we should not compare the exchange rate of rupee with a dollar for knowing the economic growth of India.

    drrao
    always confident


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