IMPACT OF SINKING RUPEE ON INDIAS FOREIGN TRADE(THREATS TO EXCHANGE RATE FLUCTUATIONS)

This study investigates the impact of rupee-dollar variations on the Indian economy. The economic conditions brought about by the rupees decline against the dollar demonstrate that there has been a significant detrimental impact of this price fluctuation on several industries. Any countrys export competitiveness and the value of its local currencies in terms of other currencies have a complex relationship. If the exported goods rely heavily on imported resources, this relationship will become more complicated. The Indian rupee has lost value numerous times during the past year, reaching a high of 80.064 to the dollar in July 2022. The Indian economy, which already had a significant budget and current account imbalance, was negatively impacted by exchange rate pressure. The Indian government made numerous difficult decisions to follow it again on the path. This essay discusses several difficulties brought on by these fluctuations as well as actions taken by the government and central bank to make them effective.