• Dr. Shuchi Gautam

Over the years, the Indian rupee has devalued itself every year, it cost in year 2019 at 68 in comparison to Rs 67 in 2018 to buy one American dollar. The Indian Rupee has fallen in value against a basket of currencies since independence in 1947 many times. The first major devaluation of the rupee happened in 1966 when it was pegged against the US dollar at Rs 4.75/$. Devaluation means decreasing the value of nation's currency relative to gold or the currencies compare to other nations. Devaluation of the Indian Rupee conducted in 1966 and 1991 has stabilized the economy which was facing a severe economic crisis prior to 1991.Lot of Economic reforms which are prevalent today has been the results of reforms which comes in place after 1991. Whenever the rupee has been devalued, exports have become cheaper and more competitive, but imports have become costlier. The objective of the paper is to study the factors that leads to decline of the rupee against dollar its impact on Indian economy and study the factors which government should take to strengthen the Indian currency. Study observed various possible factors to increase the value of rupee against dollar one can think of is to increase the export and decrease the import. Rate of interest on investments should be increase in the economy so that it will attract more foreign direct investment in our treasuries, corporate bonds etc. In the long run the weakening of Indian currency adversely impacts the Indian economy

Rupee devaluation, Economic Crisis, Exchange rate, GDP, Inflation

"An Analytical Study of Devaluation of Indian Currency", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 6, page no.817-823, June-2019, Available :http://www.jetir.org/papers/JETIR1906G25.pdf

"An Analytical Study of Devaluation of Indian Currency", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 6, page no. pp817-823, June-2019, Available at : http://www.jetir.org/papers/JETIR1906G25.pdf