There are so many reasons why India is called a backward or a developing country. These reasons rage from a large population, illiteracy, and poverty which are more or less linked to one another. But have you ever given a thought to the dropping value of the rupee in the world market? if nothing is done to improve this, it will soon add up to the long list of reasons we already have.
Before we can think of what to do, we must find out what caused it in the first place. Why is the value of the Indian rupee falling? The fault probably lies with the Reserve Bank of Indiaâ€¦.. or is it the investors who refuse to take a risk? Or is it simply the result of the internal problems of the country? Whatever it is, it has drastically changed the value of a rupee in the world market.
Let me show you the current position of the Indian rupee in the world. The exchange rate of a rupee for a US dollar has come down to a mere 53+ percent. This indicates a 14 percent drop since last year. The drop is so significant that the Indian rupee is the worst-performing currency in Asia and the third-worst in the world!
The only way to prevent this from happening is the involvement of RBI in foreign exchange. But with the RBI plainly refusing to take this step, the position of the rupee seems shaky.