Thus, the claim that the value of INR against USD has depreciated by just 1 from INR 68 to INR 69 in the period 2014-2018 stands patently false as the value of INR to USD when Prime Minister Narendra assumed office was Rs 58.66 while the present value is in excess of 68. In the graph below, the first arrow points at the previous record low at Rs 68.86 per dollar on November 24, 2016, which was reported in an article published by NDTV Profit, while the second arrow points to the all-time low on June 28, 2018. UPA 2 (May 22, 2014-May 26, 2014) Source: The Wall Street Journal NDA Regime (May 26, 2014-present) The red arrow on the graph posted below delineates the point of fall. However, the historical data on exchange rates of USD to INR from the Wall Street Journalshows that the value of rupee did fall to a low of 68.8 on Aug 28, 2013. While the exchange rate of USD to INR on May 26, 2014, the day Narendra Modi was sworn as the Prime Minister of India, was 58.66. In the period to May 16, 2014, the INR-USD exchange rate was highest on at 1 USD = 63.10 INR. Singh demitted the office of Prime Minister was 58.57. According to a website the value of rupee against US dollar on May 17, 2014, the day Dr. Manmohan Singh demitted office and Narendra Modi assumed office was 68. The above post tries to suggest that the value of INR against USD when Dr. Moreover, the claim has also been shared on Facebook and Twitter. The message was posted by a Twitter user called Squint Neon( on Jand got retweeted over 1000 times. The Indian currency had slipped to an all-time low, pegged at Rs.69.0925 to the dollar on June 28, 2018. The viral message questions the public rage( #RupeeAllTimeLow) against the rupee’s lifetime record fall against the dollar by suggesting that the Rupee vs Dollar equation deteriorated much more during UPA-II than the present regime and that the rupee-dollar exchange rate slipped by only one rupee in the period 2014-2018. The situation of 1 Rupee = 1 USD is just not affordable for a growing or developing country.“ Under gold medalist Havard economist 1 Dollar – Rs 39(2008) 1 Dollar – Rs 68 (2014) Under Chaiwala 1 Dollar – Rs 68(2014) 1 Dollar – Rs 69(2018) What this all Ranty-Rona all about?” This message which is viral on social media makes a comparison between the exchange rate of United States Dollar(USD) to Indian Rupee(INR) during the term of “gold medalist Havard economist” (Former Prime Minister Manmohan Singh) and “Chaiwala” (Prime Minister Narendra Modi). But the BPO and IT Sectors suffered a lot. Similar situation happened in India during 2007-08 when dollar was strong around Rs.40, the imports were good. Companies which are presently in India will start to move out as it will not be profitable for them. Outsourcing of job in India will be stopped.Ħ. When money does not come into India, it will result in complete economic slowdown.ĥ. Eventually people will loose job which will increase unemployment.Ĥ. Now as 1USD= 1INR why any company will pay to an employee USD 75,000 or Rs.75,000 per month if they can hire someone outside who will do the same work for USD 3000 or Rs.3000. Investment in IT Sector and Service Sector which contributes huge amount for the Indian Economy will be gone if 1 Dollar is equal to 1 Rupee. Service sector contributes almost 60% in GDP and give 27% employment in India. Foreign companies will not be investing in India when the cost of labour is higher compared to other countries.ģ. The primary reason for a foreign investment in India is the cheapest labour cost. There would be no foreign Investment if Rupee equals dollar. If it is expensive, why would any country buy from India when other competitors can offer the same at cheaper price.Ģ. Indian exports have been booming well in recent years. Because Indian products will be expensive compared to other competing nations. Exports will be expensive if value of Indian rupee and dollar are the same. Because other side of the story is completely different. But this will not last long for the situation.
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