india

Devaluation of the Indian Rupee

Devaluation of the Indian Rupee

The Indian Rupee has fallen in value against a basket of currencies since independence in 1947. In recent years, the Indian Rupee has continued to depreciate in value. Indian Rupee value against US Dollar In 1990, you could buy $1 for 16 Indian Rupees. By 2013, the value of a Rupee had fallen, so that you would need 65 Indian Rupees to buy $1. Another way of thinking about it: In 1990 1 Indian Rupee = $0.06 In 2013 1 Indian Rupee = $0.016 This shows…

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Threats and opportunities of Chinese growth on UK economy

Readers Question: Hello I recently saw a programme How China Fooled the World – with Robert Peston and I was wondering what threats and opportunities does the growth of economies like China and India provide to the UK economy? According to the IMF, in 2010, the Chinese economy was $5,878 billion – second only to the US economy. If we use GDP at purchasing power parity (PPP), the size of the Chinese economy is estimated to be even larger, at around $10,119 billion. China also has a growth rate, averaging close…

Indian economy in 2014

Indian economy in 2014

I have quite a few readers in India, so I’d like to have a brief look at the Indian economy and it’s prospects for the coming year. After spending so much time looking at the (rather depressing) economics of austerity in Europe and UK, it makes a welcome change to look at a developing economy with a different set of challenges and problems. GDP per capita (in 1990 Geary-Khamis dollars) (data range 1950-2003) Indian economy in summary For those not familiar…

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Indian Economy 2012

An Overview of the Indian economy in 2012 and its prospects for the future. (Depressed by events in Europe, a look at an economy with a very different economic outlook). Summary In the past few years, the Indian economy has been growing rapidly – (e.g.  8.5%2010-11). However, this growth has led to an increase in inflation of 6%. In response to higher inflation, the RBI of increased interest rates and this has caused a slow down in the rate of economic growth. Indian Rupee Inflationary pressures and falling competitiveness have contributed to a…