The document analyzes factors affecting the depreciation of the Indian rupee against other currencies. It conducted a study in Vijayawada, India through questionnaires and interviews. The main findings were that high investment in gold and exports/imports were the primary reasons for rupee depreciation, accounting for 72% of responses. Government programs to boost manufacturing were found to be moderately helpful in strengthening the rupee. High defense budget expenditures, at 78%, were the main cause of wasteful government spending. The conclusion was that encouraging foreign investment and using rupees in international deals could help strengthen the currency.
2. Primary Objectives:
To study Depreciation of Rupee against
other currencies
Secondary Objectives:
To study factors effecting Indian Rupee
Impact of Rupee value on Indian
Economy
To suggest required measures for
strengthening Rupee
3. To know why the Rupee is
depreciating against the other
currencies mainly Dollar .
Also to suggest the required
measures that should be adopt by
the Indian Govt to make the value
of the Rupee strong.
4. This study is conducted in different
places of Vijayawada such as currency
exchange offices, banks and some
financial institutions.
5. Currency Name : Indian Rupee
Currency Code : INR
Currency Symbol :
Subunit : 1/100; paisa
Coins freq used : 1/- , 2/- , 5/- , 10/-
Banknotes freq used : 5,10,20,50,100,500,1000
Central Bank : Reserve bank of India
Currency Users : India, and also Bhutan and
. .Nepal.
6. Modern Indian Rupee was introduced in India
after the Independence in the year 1950 on the 1st
Republic Day special.
During the first half of the 19th century Dollar and
Pound emerged as the Major Currencies in the
world, so other countries including India
exchange their currency with these two
currencies, this is the first downfall of the Rupee
in the world market.
Between 1960-70 War with China, Pakistan and
also monsoon failure and 1991 Economic crises
effected Rupee value greatly these are considered
as the big drawback to our currency.
7. INR USD POUND
1 1 4
1947
2016 July
IND USD PND EURO YUAN K.Dinar
1 67 88 73 10 222
8. Primary Sources of data:
The data was collected by
issuing questionnaires to the people who works in
the currency exchange offices and banks in
Vijayawada. And also required information is
collected through interviews.
Secondary sources of data:
Some data which is not available
is collected through the web sources which is
already exists such as wekipedia,other sites and
also through text books,papers,articles and
journals.
9. Sample design:
Convenience Sampling:
A statistical method of drawing
representative data by selecting people
because of the ease of their volunteering or
selecting units because of their availability or
easy access .
10. Respondents sample size determination
is the act of choosing the number of
observation as replicates to include in a
statistical sample.
Number of samples chosen for the study
is 100 out of 150 .
11. Due to the insufficient time accurate
data was not collected
Everyone had their own opinions so there were
differences in the data.
It was very difficult to get the free time of
respondents.
Some amount of data is collected from the
Web sources ,because unavailability of the
respondents.
12. Opinion of respondents on the main reason for the
depreciation of Rupee value against other currencies.
1)Investment on gold 2)Exports and Imports
3)High Budget on Defence 4)RBI policies
40%
32%
15%
13%
Investment on gold
exports and imports
high budget on defence
RBI policies
13. Interpretation and conclusion:
From the above table and chart it is
concluded that main reason of the
depreciation of the rupee value against other
currencies is due to the
1)Investment on gold(40%) and the exports
and imports(32%) which estimates about 72%
2)Budget on defence contributes 15% and
3)RBI policies contribute least to the rupee
value which is only 13%.
14. 1)Very helpful 2) Moderately 3)Not helpful
35%
53%
12%
Very helpful
Moderatly
Not helpful
15. Interpretation and Conclusion:
From the above chart it is
conclude that “ MAKE IN INDIA-
MADE IN INDIA” govt programs are
moderately helpful in boosting the
rupee value i.e.,
1)53% very helpful
2)35% of programs is helpful and
3) Is also concluded that only 12% of
the govt programs are not helpful.
17. Interpretation and conclusion:
From the above
chart it is concluded that the waste
expenditures done by the govt is
mainly
1)Due to the defence budget which
is 78% and
2) The rest is due to the govt
schemes i.e., only 22%.
18. From the study I found that the main reason
for the decrease the value of the Rupee is
High investment on the Gold and also Exports
and Imports
As per the second objective of the study the
impact of the Rupee on our Economy is very
high
To make our currency strong in the world
markets, Govt should encourage the FDI’s
inflows and also do the foreign deals
transactions in the Rupee instead of Dollar
