• Sunita Kumari

This paper is an attempt to develop a comprehensive understanding trade balance and depreciation of currency in India. Depreciation of currency is the fall in value of a currency in terms of its rate of exchange in relation to currencies of other countries. There are various reasons responsible for the depreciation of currency such as economic fundamentals, interest rate differentials, and political conditions of a country or risk aversion among the investors in an economy. Exchange rate has bearings on trade surplus or trade deficit, a weaker and depreciated domestic currency stimulates exports. On the other hand, it makes imports more expensive. Conversely, a strong domestic currency hampers exports. It makes imports cheaper. Balance of trade (BOT), on the other hand, is the difference between the value of a country's exports and the value of a country's imports for a given period. Balance of trade makes the biggest component of a country's balance of payments (BOP). Sometimes the balance of trade between a country's goods and the balance of trade between its services are distinguished as two separate figures. This paper studies the correlation between currency depreciation and trade balance of all products and all services in India by using statistical tools.

currency, depreciation, trade balance, products, services, export, import

"Examining the correlation between Currency Depreciation and Trade Balance in India", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.8, Issue 3, page no.1-5, March-2021, Available :http://www.jetir.org/papers/JETIR2103391.pdf

"Examining the correlation between Currency Depreciation and Trade Balance in India", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.8, Issue 3, page no. pp1-5, March-2021, Available at : http://www.jetir.org/papers/JETIR2103391.pdf