PM Modi Spoiled India in his Rule - Value of 1 Crore is not the same anymore
The depreciation of the indian rupee against the US dollar over the past two decades reflects significant economic challenges, particularly in the context of global competitiveness and India’s financial policies. From ₹45.03 per dollar in november 2004 to ₹84.07 in november 2024, the rupee’s value has steadily declined, raising concerns about the country’s purchasing power, international trade competitiveness, and macroeconomic stability. This depreciation makes imports more expensive, affecting everything from fuel to consumer goods, and contributes to higher inflation within the domestic market. In turn, the diminishing value of the rupee affects the wealth of indian citizens, with one crore rupees buying significantly less today than it did a decade or two ago.
Critics argue that the current economic policies, particularly under prime minister Narendra Modi’s administration, have accelerated this decline by increasing India’s external debt and slowing down export growth. The debt has reportedly tripled, and the country data-faces a widening trade deficit.
With exports failing to keep pace with imports, India’s foreign exchange reserves are strained, creating a shortage of dollars, which puts further pressure on the rupee. This scenario makes india more vulnerable to global financial shifts, particularly as rising interest rates in the united states draw capital out of emerging markets like India. Economists argue that india must diversify and strengthen its export base to mitigate these risks, especially given its dependency on imports for essential goods and energy.
The declining rupee also impacts India’s long-term economic prospects, as it affects investor confidence and increases the cost of foreign borrowing. For businesses that rely on importing raw materials, a weaker rupee means higher production costs, which may ultimately be passed on to consumers. While the government has undertaken reforms in areas like infrastructure and technology, critics claim that without stronger export growth and more effective fiscal management, these gains are undermined. Addressing the currency’s decline requires a comprehensive strategy that balances external debt, promotes dollar-generating industries, and prioritizes economic diversification. Only then can india stabilize its currency and regain competitiveness on the global stage.
Critics argue that the current economic policies, particularly under prime minister Narendra Modi’s administration, have accelerated this decline by increasing India’s external debt and slowing down export growth. The debt has reportedly tripled, and the country data-faces a widening trade deficit.
With exports failing to keep pace with imports, India’s foreign exchange reserves are strained, creating a shortage of dollars, which puts further pressure on the rupee. This scenario makes india more vulnerable to global financial shifts, particularly as rising interest rates in the united states draw capital out of emerging markets like India. Economists argue that india must diversify and strengthen its export base to mitigate these risks, especially given its dependency on imports for essential goods and energy.
The declining rupee also impacts India’s long-term economic prospects, as it affects investor confidence and increases the cost of foreign borrowing. For businesses that rely on importing raw materials, a weaker rupee means higher production costs, which may ultimately be passed on to consumers. While the government has undertaken reforms in areas like infrastructure and technology, critics claim that without stronger export growth and more effective fiscal management, these gains are undermined. Addressing the currency’s decline requires a comprehensive strategy that balances external debt, promotes dollar-generating industries, and prioritizes economic diversification. Only then can india stabilize its currency and regain competitiveness on the global stage.