Currency Fluctuations and Indian Economy

Abstract

A financial shock or stress affects an economy in an unexpected or unpredictable way. Integration of the economy with other nations provides opportunities to smooth its own economic cycle, depending on exchange rates and policy changes elsewhere. Much rests on the flexibility of the economy to be able to absorb external economic shocks and then bounce back when the opportunity arises. India too often remains an intolerable mess of corruption, inequality and squalor, and yet, overall, it is an optimistic place. A provocative claim that the existing economic model somehow “requires” millions to remain subjugated goes unexplained.

Currency fluctuations can be critical in international business. The Indian rupee is under great stress as overseas investors are paring their exposure to Asia’s third-largest economy amid international uncertainty and mounting worries over the domestic economy. The country’s mixed progress is not hidden, but widely discussed. Never-ending list of factors responsible for currency fluctuations, like political, economic, market, even psychological factors and such others, have contributed a lot in signifying the issue which is not only a matter of concern for policy makers but a subject of study for academicians, professionals, researchers and students also.

The present study is a sincere attempt mainly to address some of the key areas like export, import, foreign investment, oil and gold rates which are believed to be strong parameters to influence Indian economy.

Keywords: Economy, Currency, Export, Import, Investment, Oil & Gold