Free Fall!

During the years when I drawn my salary in dollars, the rupee dollar relation was around one-to-ten. Throughout my brief  tenure when I provided BPO jobs, exactly between  late nineties and early 2000, a dollar cost 45 Rupees. However after 2010 dollar surges ahead and now standing around Rs. 61. Why and how Rupees falling?

Rupees V/S Dollar

In 1947, the exchange rate was 1 dollar equal to 1.00 Rupee but with the introduction of 5 year plans government needed foreign funds and started devaluing Rupees. It further devalued after Indo-China war.

Growing differences in our imports and exports is making the different. India spend more then earn concerning dollars, because whatever we are selling are fetching less dollars and what we are buying, are demanding more dollars from us. Due to large population, India’s imports are increasing and exports are decreasing. That means we earn less dollars compare to what we spend. Another reason for declining dollars is restricted FDI policies. There are many sectors in which FDI is restricted such as retail, insurance, defence etc

India's imports of gold and silver are a major reason for the rupee's slide. However, with a lower rupee value, key sectors like Information Technology, Pharmaceutical and Textiles will benefit from a higher dollar value as bulk of their revenues come from overseas markets.

Rupees against Dollar since 1947

Year	Exchange rate Rupees v/s Dollar
1917	0.07692307692
1925	0.10
1947	1
1952	4.750
1966	7.50
1975	10.409
1980	7.887
1985	12.369
1990	17.504
1995	32.427
2000	45.000
2006	48.336
2007 (Oct)	38.48
2008 (June)	42.51
2008 (October)	48.88
2009 (October)	46.37
2010 (January 22)	46.21
2011 (April)	44.17
2011 (September 21)	48.24
2011 (November 17)	55.3950
2012 (May 23)	56.25
2012 (June 22)	57.15
2013 (May 15)	54.73
2013 (June 12)	58.500
2013 (June 27)	60.73
2013 (July 08)	61.14

!!!The love of economy is the root of all virtue.- George Bernard Shaw!!!