How has the Indian currency impacted India’s export performance?

The Indian currency has had a significant impact on India’s export performance. The Indian rupee has been highly volatile over the past few years, with the value of the currency fluctuating significantly against the US dollar. This has had a major effect on India’s exports, as the value of the rupee affects the competitiveness of Indian exports in the international market.

When the rupee is weak, Indian exports become more competitive, as Indian goods become cheaper for overseas buyers. This increases the demand for Indian exports, leading to an increase in export performance. On the other hand, when the rupee is strong, Indian exports become less competitive, as Indian goods become more expensive for overseas buyers. This leads to a decrease in demand for Indian exports, resulting in a decrease in export performance.

The Indian government has implemented various measures to control the volatility of the rupee and to ensure a stable currency. These measures include foreign exchange reserves, currency swaps, and intervention in the foreign exchange market. These measures help to stabilize the rupee and reduce its volatility, thus helping to ensure a more consistent export performance.

In conclusion, the Indian currency has had a significant impact on India’s export performance. The volatility of the rupee has a major effect on the competitiveness of Indian exports in the international market, and the Indian government has implemented various measures to control the volatility of the rupee and to ensure a stable currency. These measures help to stabilize the rupee and reduce its volatility, thus helping to ensure a more consistent export performance.|