Factors Behind the Depreciation of the Indian Rupee

UNIVERSITY OF WEST LONDON
DEPRECIATION OF THE
INDIAN RUPEE
HARDIK BHARATKUMAR BENDBAR
1/9/2015
Submitted in partial fulfilment of the requirement for the Masters Degree in International
Business Management

2
ABSTRACT
This study aims to provide an investigation to find the main cause for Depreciation of the Indian Rupee by
exploring two factors: UPA 2 Government Instability and Indian Exchange Rate Regime. Besides this, study
also aims to test the credibility of proposed questions. This research has adopted Positivist philosophy
and deductive approach in order to quantify the findings using close-ended questionnaire survey method.
This research will serve as a foundation for other researches based on depreciation of currency with a
specific viewpoint for its causes. This in-turn can help students, employees, employers to hedge their
position during further depreciation by identifying the signals coming through the economic
fundamentals of the country.
ACKNOWLEDGEMENT
First and foremost, I would like to acknowledge Dr. Sebastian Okafor, who was not only my supervisor
during my dissertation, but also a learning source. I am thankful for the continued support, motivation,
constructive criticism, and recommendations. I would also thank my Dad and Mum for their continued
support throughout my Masters studies. Lastly I would thank by friends and colleague who kept me
motivated to push an extra mile to achieve my goals.

3
Table of Content
Chapter One..................................................................................................................... 6
Introduction ..................................................................................................................... 6
1.1 Enquiry Overview..................................................................................................... 6
1.2 Research Question .................................................................................................. 7
1.3 Aims and Objectives of the Study ............................................................................ 8
1.4 Background of the Study.......................................................................................... 8
1.5 Rationale of the Study............................................................................................ 10
1.7 Scope and Limitations of the Study........................................................................ 10
1.8 Summary.................................................................................................................11
Chapter Two .................................................................................................................. 12
Literature Review .......................................................................................................... 12
2.1 Introduction.............................................................................................................12
2.2 Interlink Between Government Instability and Depreciaiton of Currency................12
2.3 Government /Political Instability..............................................................................13
2.3.1 Corruption............................................................................................................14
2.3.2 Coaltion Government...........................................................................................15
2.4 Instability of UPA 2 Government...........................................................................16
2.5 Exchange Rate Currency Regime.........................................................................17
2.5.1 Classification of Exchange Rate Regime...........................................................19
2.6 Indian Exchange Rate Regime..............................................................................20
2.7 Summary................................................................................................................22
Chapter Three................................................................................................................ 22
Research Methodology................................................................................................. 22
3.1 Research Paradigm .............................................................................................. .22
3.2 Research Approach ............................................................................................... 26
3.3 Research Strategy(Survey).................................................................................... 28
3.3.1 Alternate Research Strategy(Case Study) .......................................................... 30
3.4 Research Instrument.............................................................................................. 31
3.4.1 Close ended mail Questionnaire..........................................................................32
3.4.2 Conducting Survey...............................................................................................32

4
3.5 Sampling Method ................................................................................................... 34
3.6 Ethical Consideration ............................................................................................. 35
3.7 Strengh and Weakness of Methodology ................................................................ 35
Chapter Four............................................................................................................... 37
Analysis and Findings ............................................................................................... 37
4.1 Introduction ............................................................................................................ 37
4.2 The Analysis .......................................................................................................... 37
4.3 Testing the credibility of proposed questions ......................................................... 42
4.3.1 Testing the credibility of Proposed question(1) ................................................... 42
4.3.2 Testing the credibility of Proposed question(2) ................................................... 44
4.4 Depreciation of Indian Rupee .......................................................................... 46
4.5 Summary................................................................................................................ 49
Chapter Five ............................................................................................................... 50
Conclusion and Recommendations ......................................................................... 50
5.1 Introduction ............................................................................................................ 50
5.2 Achieving the Research Aims and Objectives through Practice............................. 50
5.2.1 Objective 1.......................................................................................................... 51
5.2.2 Objective 2.......................................................................................................... 51
5.2.3 Objective 3.......................................................................................................... 52
5.2.4 Objective 4..........................................................................................................52.
5.3 Conclusion.............................................................................................................53
5.4 Recommendations.................................................................................................54
5.5 Future Research.....................................................................................................54
5.6 Summary...............................................................................................................55
Reference....................................................................................................................... 56
Appendix........................................................................................................................ 64

5
LIST OF FIGURES
Figure 1: Data Collection Methods......................................................................32
Figure 2: Gender Chart........................................................................................39
Figure 3: Occupation Chart.................................................................................39
Figure 4: Occupation vs Gender chart................................................................40
Figure 5: Born vs Gender Chart...........................................................................40
Figure 6: Residency vs Gender Chart...................................................................41
Figure 7: Depreciation of the Indian Rupee.........................................................46
Figure 8: Depreciation of The Indian Rupee vs Gender......................................47
Figure 9: Depreciation of the Indian Rupee vs Occupation.................................48
LIST OF TABLES
Table 1: Advantages and Disadvantages of survey Research.................................30
Table 2: Correlation analysis 1................................................................................42
Table 6: Correlation analysis 5.................................................................................45
Table 7: Correlation analysis 6.................................................................................45

6
Chapter 1
Introduction
1.1 Enquiry Overview
The purpose of the study is to investigate the cause for depreciation of the Indian Rupee. This study
mainly explores two causes for depreciation of the Indian rupee: Government Instability and Exchange
Rate Regimes. Enquiry overview serves to provide a route map for this dissertation so that readers can be
guided through the emerging chapters. This study is structured in five chapters: chapter 1, Introduction;
chapter 2, Literature Review; chapter 3, Research Methodology; chapter 4, Analysis and Findings; chapter
5, Conclusion and Recommendation. Besides this, each chapter has introduction and summary in order to
magnify the essence of main themes. Following are the detail overview of each chapter:
Chapter one introduces to the background and importance of the study, rationale behind the chosen
topic. This chapter also explains the aims and objectives of this study and most importantly the research
question. It also outlines the limitation of this study and determines the scope for further study in this
area.
Chapter Two offers a theoretical background and review on extent of literature particularly in the field of
government instability and exchange rate regimes. This chapter is mainly divided into three themes,
Firstly this chapter shows the relation between government instability and depreciation of currency
based on strong literatures provided by various authors. Considering the instability of Indian
government, this chapter offers the theoretical proposition of the factors like corruption and coalition
government causing government instability .Secondly it previews the theories based on exchange rate
regimes and its classification and thirdly its relates Indian exchange rate regimes and Government
Instability of UPA 2 with depreciation of the Indian Rupee.
Chapter Three discusses the research methodology adapted in this research. It includes the research
paradigm, research approach and research strategy which was undertaken to carry out this research. This
chapter also discusses how empirical data was collected to support research aims and objectives by
means appropriate research instruments. Close ended mail questionnaire through survey was selected as
a chosen research instrument for gathering data from participants within the context of study.
Correlation and cluster analysis using SPSS analytical tool was used to analyse and interpret the given
data.

7
Chapter Four gives the explanation of data analytic method adopted in this research. This chapter has
been categorised into three parts in which first part discusses various types of data analytical method and
why correlation and cluster analysis of multivariate method using SPSS analytical tool was used to analyse
the give the set of data. Second part includes testing the credibility of proposed question for this research
and final part includes analysing given data to find the cause of depreciation of the Indian Rupee.
Chapter Five discusses the outcome of this study and extent to which the aims and objectives of this
research were accomplished. The chapter explains how the research aims and objectives were achieved
during the course of study. A conclusion has been drawn from the data which was analysed with key
findings. Recommendation and suggestion for future study has also been proposed in this chapter.
1.2 Research question
As this study seeks to investigate the cause of Depreciation of Indian Rupee, there are certain questions
which need to be answered. This study aims to answer the causes for depreciation of Indian rupee and
hence following questions seems to be appropriate for the given title:
Question 1: Is it due to the consequence of UPA 2 Government Instability?
OR
Question 2: Is it due to the shifting patterns in Exchange Rate Regime of India?

8
1.3 Aims and Objectives
The main purpose of this study is to investigate that whether the depreciation of Indian rupees is an
outcome of government instability or is it due to shifting pattern in exchange rate regimes adapted by
India. It is important for every research to outlines its aims and objectives which helps to facilitate a
sound basis for enquiry as well as guides in conducting research. Thus aims and objectives can be
regarded as the fundamental factor which enables an enquiry without which any research would be non-
substantial. In order to analyse the root cause of depreciation of the Indian rupee and to accomplish this
research, the following aims and objectives were designed:
 To review conceptual literature on Government instability and Exchange rate regime and their
impact towards depreciation of Currency.
 To explore the factors leading to Government Instability in United Progressive Alliance 2 Regime
causing Depreciation of the Indian Rupee and thus testing the credibility of proposed question 1.
 To examine the factors emerging from changing Exchange Rate Regime of India, causing
Depreciation of the Indian Rupee and thus testing the credibility of proposed question 2.
 To investigate the cause of depreciation of Indian Rupee.
1.4 Background of the study
The Indian Rupee has been depreciated by 27% since 2011 (Srinivas, 2012) which raised questions to
several economists to find the actual cause for this depreciation. The researcher has mainly considered
two aspects for depreciation of Indian Rupee: Government Instability and Exchange rate regimes.
Government plays an important role in the economy of any country and their instability can lead to major
financial and economic changes in the country which can ultimately distort the value of their currency.
Political instability and economic growth are deeply interconnected as unstable government may reduce
foreign investment and the speed of economic development whereas poor economy may lead to
government collapse and political unrest. Foreign investors tend to step back when there is instability in

9
the government. The main reason behind this is the inability to make favourable reforms and policies
which can live up to expectation of the investors and the well-being of the country. United Progressive
Alliance (UPA) 2 which was the ruling government of India from 2009 -2013 where indulge in serious
corruption charges which affected the sentiments of foreign investors and created more speculations
regarding the economic fundamentals of the country. Besides being indulge as corrupt government, they
were also prone to coalition form of government which isolated their decision making capabilities to
make reforms in favour of the Country. The country’s GDP saw a drop from 9.1% to 4.6 %(BJP,2014)
which showed government’s inability to control the rampant corruption prevailing in bureaucracy and
slow governance resulting from coalition government. All this factors lead to UPA 2 government
instability which created uncertainty over investors mind regarding their commitments in making
economic reforms and creating policy paralysis (Srinivas,2014)thus causing Indian rupee to depreciate.
Exchange rate is a key financial variable which is interconnected with the economic growth of the country
as it affects the decision made my exporters, importers, policy makers, tourist and financial institutions
(Dua,2014). In 1993, Indian Exchange rate regime adapted a managed float regime due to liberalization of
international trade (IMF,2012). Managed float has been considered as a cause for depreciation of
currency as it allows more capital mobility and less monetary power.
(Williamson(1996),Willet(2003,2006a,2006b). According to Reserve Bank of India (RBI), the country’s
central bank, the Indian Rupee is a market-determined exchange rate. This implies that there is a
currency market and the exchange rate is not determined by the authorities. Thus exchange rates are
independent of government decision and are totally dependent on fluctuation in market. It has been well
known fact that Indian rupee is de facto softly peg to US Dollars (Cavoli and Rajan (2008)) but recent
studies by Frankel and Xie(2010) and Patnaik & Shah (2009) showed Euro is the currency which is gaining
dominance in defining the value of Indian Rupee. The value of US dollars was appreciated during 2011
due to improvement in US economy and also the fact that all major resources like oil, gold and other
valuable metal were favouring US dollars which attracted the foreign investors to buy more US dollars
than Indian Rupee causing trade deficit. Moreover, Euro Zone crisis further dampened the situation of
Indian rupee causing it to depreciate. Thus liberalised exchange rate regime of India gave investors the
opportunity to invest in currency/country which gave more return. This resulted into large trade deficit
for India resulting into depreciation of Indian Rupee.
In August 2013 Indian rupees had hit its all time lowest value of 68.85 against dollars. (Ninan, 2013) The
main reason for this can be considered as due to the fact that the India’s current-account deficit is
increasing, slow governance, corruption, Euro Zone crisis, appreciation of US dollars and loss of
confidence in investors in Indian assets. This indicates that either the government is been inactive to take
strong steps to control the downfall of Rupee or depreciation of rupee is the due to shifting pattern in
Indian exchange rate regime.

10
1.5 Rationale of the study
Depreciation of Indian Rupee has severely impacted the sentiments of Entrepreneurs, Working
Professionals, overseas students, Foreign Institutional Investors and tourism industry.(Kumar and
Sharma,2013). It’s been a concern for every citizen of India and a topic of research for many economists
for finding the actual cause of Depreciation of Indian Rupee. Being an Indian nationality and an overseas
student, fall in Indian Rupee has left a considerable impact in my life which to some extent has influenced
me to carry out this research. This study explores two major causes for depreciation: Government
Instability and Exchange rate regime. There is a basic economic law attached to this depreciation which is
associated with government instability and exchange rate regimes. Government instability threatens the
sovereignty of country which plays an important role in speculations. Thus Importers which need dollars
to make payments and Foreign Intuitional Investors which are scared of investing their money due to
weak bureaucracy are creating imbalance in current account deficit. Moreover factors like Euro zone
crisis, rise in price of crude oil, volatility in equity market and withdrawal of investors which are the
outcome of Exchange rate regime further dampens the value of rupee severely.
This research mainly concerns about impact of weak government and the outcomes of liberalised
exchange rate regimes which dampened the value of rupee. Rupee being one of major Asian currency has
severely impacted Indian Oil companies, Airline with large domestic presence and
Automakers(Gayathri,2013) whereas MNC’s like Tata steel , Hindalco, Infosys, Wipro, Reliance Industries
whose major revenues comes from US and EU were among the beneficiaries from Depreciation.(The
Economics Times,2013). Identifying the actual cause of Depreciation of Indian rupee would enable
companies, student, employees, investors, tourism industry to hedge their position in future
depreciations. This study can serve as foundation for further research carried out on depreciation of
Indian rupee and would enable other researchers to simplify the causes for depreciation.
1.6 Scope of the Study
The data was collected in form close ended questionnaire through survey, which enabled the researcher
to collect various data with same set of questions making analysing and interpretation more convenient.
Positivist Paradigm and deductive approach enabled the research to be more objective based,
measurable and generalised. Based on conceptual literature provided in below chapter and correlation
analysis, the researcher tries to justify the chosen two questions which are being treated as cause of
Depreciation of Indian Rupee. Conceptual literatures serve to provide theoretical justification for the
chosen questions .Correlation analysis is used as a tool to measure the strength of relation between the
factors like coalition form of government and corruption with government instability in UPA 2 regime
which ultimately distorted the value of the Indian Rupee. It also measures the strength of relation

11
between the factors like Rise of US dollars, Euro Zone crisis, and speculators effect with Exchange rate
regime which is considered to be another reason for depreciation of Indian Rupee. Thus Correlation
analysis serves to provide empirical justification for the chosen questions. Investigating the cause of
Depreciation of Indian Rupee, based on two proposed questions which have been justified is further used
in cluster analysis to analyse the actual cause of depreciation.
Although this research has been carried in a best way possible there has been acknowledged limitation
within this research. The major draw-back of this research is that it only considered two phenomenons
which caused Indian rupee to depreciate. Depreciation of currency can be caused by many factors like
inflation, global crisis, government policy to boost export and reduce imports, downgrading of country’s
stock, withdrawal of investment. The researcher has summarised and categories all this small
components which leads to depreciation into two big phenomenon government instability and Exchange
rate regime. Moreover the researcher has only considered two aspects of UPA Government Instability:
corruption and Coalition form of Government. As Government Instability is a multidimensional
phenomenon, it is not necessary that only two variables can cause instability in government. There are
many other variables like riots, unemployment, judicial system of the country and many more. But due to
the fact the corruption and Coalition form government were most dominant in UPA 2 regime; the
researcher has considered it as causes for instability. The other limitation is that as this research is
quantitative and positivist in approach, it lacks in qualitative data. More focus was given on quantitative
data where qualitative data was ignored in this research. Lastly, time management was also a challenge
because of researcher’s personal interest for completing the research before time. Despite outlining all
the drawbacks and limitation, I believe this research demonstrates a well explored and in depth analysis.
1.7 Summary
Chapter 1 presented an overview of the research understudy. It gave the detailed background
information, rationale and limitation about the topic. Research question, aims and objectives were clearly
defined and discussed properly. This chapter was aimed to elaborate the framework adopted by the
researcher to accomplish this research.

12
Chapter 2
Literature review
2.1 Introduction
The following chapter illustrates and define Government Instability and factors leading to Government
Instability such as corruption and coalition government. It also discusses the relation between
government instability and currency depreciation and how this theoretical supposition was used in UPA 2
government Instability which caused depreciation of the Indian rupee in 2011. Besides this, definition and
classification of Exchange rate regimes has also been mentioned in this chapter. Later in this part, it’s
been showed that how the factors resulting from Indian Exchange rate regime caused Depreciation of the
Indian Rupee.
2.2 Interlink Between Government Instability and Depreciation of
Currency
Currency Depreciation can be defined as decrease in the value of currency in the floating exchange rate
regime due to market forces (Picardo, 2013). There are many reasons which can cause currency
depreciation such as economic fundamentals, political instability, interest rate, foreign investors and
exchange rate regime and so on. According to Morris and Shin 1998 model of currency crisis, depreciation
of currency is a phenomenon which is interconnected with political instability. The model proposed by
Morris and Shin in 1998 is very closely related to Frankel and Rose (1996), Sachs, Tornell and Velasco
(1996), Goldstein, Kaminsky and Reinhart (2000), Kamin , Schinler and Samuel (2001), Bussiere and
Fratzscher (2002) and Berg and Patillo (1996). The only difference in this approach is the addition of
political variable.
Based on the theoretical models, it is plausible to correlate the linkage between the politics and
depreciation of currency. Given the fact that the depreciation of currency caused by currency
crisis(Krugman,2000) have a self fulfilling feature , we can use either the “second generation” self fulfilling
feature model which has complete information on fundamentals ( models proposed by Obstfeld’s) or we
can use one of the model with incomplete information proposed by Morris and Shin’s (1998). According
to Obstfeld’s (1996) model there are mainly three ranges of fundamental values in which the
fundamentals of lowest range is so bad that government will relinquish the peg even if there is no attack
from speculators. In contrast to lowest range, the fundamentals of highest range are so strong that
speculators do not seems to be interested to launch an attack on the currency. Whereas the intermediate
range consist of multiple equilibrium in which the speculators of first equilibrium believes that
government will relinquish the peg. This belief can be considered to be self-fulfilling as speculators attack

13
causes the government to abandon the peg. While in second equilibrium, its converse: speculators are
deterred from attacking as they would believe that the government will be defending the peg and thus
depreciation does not occur.
There are mainly two limitation of this approach; firstly it does not explain that which equilibrium will
prevail in the intermediate range of fundamentals, which strictly rely on the appeals to the factors that
are exogenous to the model. Secondly in the absence of such appeals and the presence of multiple
equilibrium rules out the possibility of government instability and coalition or divided government which
increases the probability of currency crisis resulting into depreciation of the currency. Recently developed
theory of global games has added more value and has made Morris and Shin (1998) model more
appealing as it is able to address both of the above shortcomings.
Global games are the incomplete information games that helps to generate a unique equilibrium in
coordination situation by allocating a small amount of noise in actor’s knowledge of some underlying
state (Carlsson and Damme,1993). Morris and Shin argues that it is reasonable to assume that there is a
noise generated from the signals received by speculators regarding the quality of government. This shows
that assumption is sufficient enough to generate a unique equilibrium i.e. There is a unique level of
fundamentals below which depreciation occurs and above which it doesn’t. As a result of comparative
statics drawn from Morris and Shin framework, Heinemann and Illing (2002) illustrated that if there is
increase in the beliefs among speculators in regards to government stability and its credibility to make
policies than it increases the probability of a depreciation of currency. According to Morris and Shin
model, government instability is likely to be high if the government is a coalition government with regular
turnovers. Thus using this logic and combining it with Heinemann and Illing’s comparative static results
shows that government instability increases the probability of depreciation of currency as it generates
more beliefs thus creating uncertainty in speculators mind.
2.3 Government/Political Instability
Government instability can be defined as the amount of interaction between the executive and the
legislature, the ideological heterogeneity of partners and the outcome of bargaining over portfolios
allocation. It is the propensity of government to take firm decision. Economists consider Government
instability as malaise which can harm the economic performance. It may also lead to weak policy reforms
creating more volatility and thus effecting the macroeconomic performance of the
country.(Carmignani,2011). Alesina et.al (1996) used data of 113 countries from 1950 to 1982 indicating
that GDP growth is significantly low in the countries were their is high probability of government
instability. Even in recent paper, Jong-a-Pin(2009) also suggested that government instability leads to
lower economic performance. Government instability is multi-dimension phenomenon which is caused by
many variables such corruption, riots, turnover in government, coalition government and many more. It
also increases the risk of higher inflation (Aisenand Veiga, 2006) and divert the foreign investment
(Alesina and Perotti,1996).
The researcher is mainly considering two aspects of political instability: Corruption and Coalition
Government as UPA 2 regime was indulge in corruption such as irregularities over allocation of natural
resources, environment, land acquisition problems and slow governance emanated from coalition politics

14
which caused delays in withdrawal of fiscal and monetary stimulus. This created uncertainty among the
foreign investors causing GDP of the country to fall, which resulted in depreciation of Indian Rupee.
2.3.1 Corruption
Corruption is one of the major factors which hinders the economic growth of the country.(Chene,2014).
Corruption is an outcome of political instability (Tanzi,1998) which directly impacts the economy and
development of the country resulting into loss of investment, taxation, resource allocation including
composition and effectiveness of public expenditure. (Mauro 1995; Tanzi 1997; Gupta,2000; Gyimah-
Brempong 2001). This creates speculations regarding economic fundamental of the country resulting into
lower GDP (Ronthstein and Holmberg,2011)and thus causes depreciation of currency.(Morris and
Shin,1998).Corruption can be defined in many ways but its simplest yet most effective definition can be
considered as the abuse of public power for the private benefit.(World bank,2014). It is interlinked with
government (Tanzi,1998) and directly correlated with low GDP per capita of the country (Ronthstein and
Holmberg,2011). Corruption plays an important role in reducing the foreign investment (Zurawicki and
Habib 2010,Wei (2000a,2000b,2001)) as it increases the cost of investment(Simmons and
Simmonsin,2006). Corruption increases the risk of reputation and exposes the firm to more vulnerable
situation in terms of extortion. Thus corruption raises uncertainty in investors mind by depressing their
company’s value and making its accessible capital more expensive.(Transparency
International,2009).Moreover it leads the government officials to allocate public and natural resources
such as large infrastructure, defence projects , coal and other mining allocation to the firm which provides
more bribe, thus abandoning fair competition.(Chene,2014).
In-contrast to above, there has been studies indicating the positive perspective of corruption towards
economy of the country. Leff(1964) and Huntington(1968) stated that corruption acts as oil in mechanism
as it enables the government officials to remove rigidities prevailing in bureaucracy, thus making it more
favourable for investment and growth of the economy. Beck and Maker(1986) and Lien(1996) further
supported through there models that firms which are efficient enough from its competitors can only
bribe more , thus promoting allocation of projects to more efficient firm which can lead for the
betterment of the economy. According to Lui(1985), corruption is a perception of time. Firms for whom
the time is valuable will bribe the government official so that they can economise on time by jumping
from the line. Moreover it helps to fund politician which they later can use for the progress of the
country.(Graziano,1980).
Even though the above studies are pro-corruption but it lacks in many ways and has many flaws in it.
Bribes are the medium of investment which enhances the return on its investment. Thus the firm who
offer highest bribes are not necessarily the most economically efficient for the country. Moreover
Rigidities and rules prevailing in bureaucracy are not exogenous to the society; in-fact corruption can

15
allure them to make favourable laws to enhance more corruption. Political funding through corruption
can serve as a better option in short term for wage supplement and rent seeking but it is hazardous in
long term. Corruption increases public spending while public revenue is reduced, thus contributing to
larger fiscal deficit which distorts the economy (Tanzi,1998) and ultimately depreciates the currency.
According to Tanzi and Davoodi(1997), corruption dampens the GDP of the country through four main
channels: higher public investment, lower government revenues, lower quality of infrastructure and
lower human, physical and educational resource. Thus corruption, a variable of government instability
dampens the GDP which results into depreciation of currency.
2.3.2 Coalition Government
Coalition Government and Coalition Politics serve to be an important link between politics and economic
performance for (at-least) two reasons. Firstly coalition government has been observed as regular
phenomenon in the countries which have experienced un-interrupted post-war history of democratic
government. Secondly, the nature of coalition government is likely to add several new dimensions to the
standard notion of political instability.(Carmignani,2011) Coalition is a phenomenon of multi-party
government where by number of minority parties led by a majority party come together for the purpose
of establishing a successful government. The term ‘coalition’ was derived from the Latin word
“coalescere” where Co means together and alescere means to go or to grow together. According to the
English dictionary coalition is an act of coalescing, or uniting into one body, a union of persons, states or
an alliance. From political point of view coalition is a term used as an alliance or temporary union for joint
action of various powers or states. It also helps to form single government from distinct parties. Ideology
plays an important role in coalition politics as more larger the ideological gap, more likely the conflicts to
occur, thus resulting more instability.(Laver and Shepsle,1996 a,b). Thus different ideologies hinders the
policy making capability of the government resulting into speculations of bad governance which effects
the investment decision as well as resource allocation.(Carmignani,2011). Moreover Stability of the
government depends upon the formation of coalition. If the leading party in coalition government
secures fewer seats its control over its coalition partners decreases and at the same time reduces the
capability to take firm decision.
There has been many well known papers including those by Alesina and Drazen (1991), Spolaore (1993),
Alt and Lowry (1994), and Alesina and Perotti (1994) in which they argued that coalition or divided
government increases the possibility of currency crisis which leads to devaluation of currency. Divided or
collated government tends to create a negative impact on the economy of the country as it delays the
process of decision making caused due to uncertainty over preference. This can incur a huge loss for the
government during the crucial period of external and internal shocks. Thus the negative perspective of
coalition government seems to be pre-dominant as it received further more reinforcement from the

16
recent works by Tujula and Wolswyk (2004), Tvennerien (2004) and Willett (2004). Although there have
been few positive aspects of coalition government which were associated and described by MacIntyre
(2001 & 2002) and Haggard (2002) respectively. Their views regarding the Coalition government was that
the divided government is beneficial for the economy of the country as it allows other parties associated
in coalition ties to represent their views and also serves as a check on the arbitrary changes in the
policies. Their claim was that more veto players (parties or member which are essential to approve any
proposed policies, not more than 2-3 veto players) allows the government to make crucial adjustment
which serves for the benefits of the country whereas extremely less veto players hinder the credibility of
the policy which allows the government to monopolize its policy without any check-on. However they
also argues that more than three veto players can make the account of policy stasis more weaker as it
creates more opinion over the policies changes which ultimately hinder the characteristics of adjustment
of essential policy reforms. Thus the argument presented by MacIntyre in which he shows the quadratic
relationship between veto players and adjustment fails to explain that why a shift from one to two veto
players will not be sufficient enough to generate policy stasis. Moreover his argument is less theoretically
developed and also due to the well specified war of attribution models which constitutes a firm base for
the predominant negative perspective of divided or coalition government.
2.4 Instability of UPA 2 Government
Indian Rupee has been depreciated by more than 27% against dollar since July,2011(Srinivas,2012) which
marks one of the biggest decline among the Asian Currencies. According to Raghuram Rajan, RBI (Reserve
Bank of India) Governor, falling rupee caused due to slowing down of GDP was mainly due to the
consequence of political instability. Political instability was mainly in the form of Slow governance, delays
in withdrawal of fiscal and monetary stimulus caused due to coalition politics and corruption such as
irregularities around allocation of natural resources, environment, land acquisition problem created
uncertainty among the foreign investors which resulted in devaluation of Indian Rupee.(The Times of
India,2014)
One of the best economic indicator to measure the stability of the government is its GDP.(Alesina et
al.,1992). The GDP of India was on an average of 8-9% from 2004 to 2011 which saw steep decline to 4-
5% in 2011-2013. (The Times of India,2014). UPA 2 which was the ruling government of India during the
period of 2009-2014 had successful first term (2004-2009) in which the country saw the GDP growth from
3.8% to 9.1%. Although being successful in its first term, it couldn’t repeat the same in following term
where the country saw a considerable drop in GDP from 9.1% to 4.6 %.(BJP,2014).According to Ashok
Kotwal(2014), UPA 2 lacked in its ability to tackle the consequence of economic growth which resulted
into increasing conflicts over land acquisition, corruption in booming infrastructure, natural resources
sectors and poor policy reforms which resulted into political instability. Moreover UPA 2 government was
too late to react to the corruption prevailing in land acquisition and the law which was passed later for
land acquisition was full of flaws.(Ghatak and Ghosh,2011). The Economist (March 15,2014) quoted that
corruption in India has increased than compared to its previous five years. The UPA 2 was alleged to be
corrupted as they were involved in five major scams: 2G scam, coal blocks, black money (money
laundering) and Commonwealth games.(Banerjee,2014) Thus corruption in UPA 2 regime was rampant

17
and affected the sentiments of foreign investors to great extent. Besides corruption, Coalition politics also
played an important role in creating political instability which affected the sentiments of investors,
causing depreciation in Rupee. UPA 2 mainly suffered two major issues as being part of coalition
government, firstly the coalition form was too fragmented which gave smaller member of coalition
government more power with respect to their size as their support was too vital for the survival of the
government. The best example for this would be the DMK party (a party from South India) leader
Karunanidi, proved to be crucial for UPA 2 as due to his support congress was able to form coalition
government and due to which he was given a cabinet birth as well. Secondly, it had to tolerate the
inefficient performing coalition partner for instance National congress leader and a powerful member in
UPA 2, Sharad Powar who was the agriculture minister of India proved to be ineffective in curbing high
price rise in food. Commenting to this abortive behaviour Janardan Dwivedy, a congress general secretary
stated that “it is a coalition government and not a fully fledged congress government, although congress
is a largest member but it is as equal as other members in coalition government”. Thus it cannot force its
partners to act in a particular way if they are unable or unwilling to act. (Wallace and Roy,2014). Thus
coalition politics has resulted into slow governance and exposed the UPA 2 government over its inability
towards favourable policy reforms. This has created the uncertainty of its commitment over economic
reforms, retrospective taxes and policy paralysis which have forced the foreign investors to take money
out of Indian stock market resulting into lower capital inflows.(Srinivas,2014). In August 2013, Indian
Rupee touched its record low value of 68.85 against dollar (Ninan,2013) raising speculations over the
decision making capability of UPA 2 as it was on the verge of passing the food security bill which could
have increased the current account deficit thus resulting into more depreciation of Rupee.
Thus lack of clearances, policy paralysis, corruption, fear in commitment of bureaucracy, allegation of
scams, crony capitalism and coalition politics proves UPA 2 government’s instability which increased the
beliefs of speculators resulting into one way speculative attack. This situation compelled UPA 2
government to make hiatus policy making and disrupted the business confidence causing fiscal instability
and high trade deficits which ultimately depreciated the rupee.(Sharma,2014). This shows that Morris
and Shin(1998) model of currency crisis in which depreciation of currency is related with political
instability is applicable to depreciation of the Indian Rupee which is inter-linked with the instability of
UPA 2 government.
2.5 Exchange Rate Currency Regimes
An Exchange Rate is a key financial variable which is interconnected to the economy of country as
it affects the decision made by exporters, importers, bankers, policy makers, tourist, financial institution,
and foreign exchange investors. (Dua,2014). After the collapse of Bretton Wood’s system, the choice of
exchange regime have been of specific interest to many readers particularly of developing and emerging
economies. During the period of early 1990’s several economies including those in Asia, shifted their
exchange rate currency regime from controlled to market determined exchange rate regimes. Moreover
after the Asian crisis, pyrrhonism about the credibility of intermediate exchange rate regime influenced
more countries to accept either the bipolar view or corner solution in which country should either adopt
hard peg or it should have free float. Hard peg has been averse by many countries after the Argentinean
crisis in 2002 which led to the adaption of flexible exchange rate regime by majority of the emerging and
developing countries. However exchange rate regime hasn’t witnessed the pure float but instead adopted
constrained or managed floating which enables the monetary authorities of the country to take active

18
part in determining the exchange rate flexibility.(Mohanty and Bhanumurthy, 2013) . But for a twist,
recent studies indicate that manage float causes more chances for depreciation of the
currency.(Williamson(1996) and Willet(2003,2006a,2006b). Although it’s been argued by Jeffery
Frankel(2004) that there is no substantial theoretical proof which determines that managed float causes
devaluation. However the hypothesis of exchange rate regime responsible for crisis which causes
depreciation of currency can be partly justified by “Unholy Trinity” where it concludes that independent
monetary policy, fixed exchange rate regime and high capital mobility can’t exist altogether.
According to Calvo and Reinhart (2002), de jure or official exchange rate regime as reported by monetary
authorities of respective country can be different from de facto exchange rate regime which is based on
actual behaviour of exchange rates due to “fear of floating”. A currency regime is considered to be de
facto peg when the volatility of the exchange rate against one currency is very low, owing to trading by
the central bank.(Goel,2010). Over the past decade there have been number of studies based on the
exchange rate regimes classification which serves as an alternative to de jure classification including those
of Ghosh, Gulde and Wolf (GGW, 2003), Shambhaug (2004),Reinhart and Rogoff (2004) and Levy Yeyati
and Sturzenegger (LYS, 2005) , Willett, Kim and Nitithanprapas (WKN, 2007), Cavoli and Rajan (2008),
Frankel and Wei (2008). Each classification of exchange rate regime is distinct as the approach and
technique adapted in each study is different from each other. LYS uses cluster analysis to combine the
data on exchange rates and international reserves. In this way they can account for exchange market
intervention as well as exchange market intervention as well exchange market movements. RR rely
mainly on the movements of market –determines exchange rates which often are different from official
ones; giving more emphasis on parallel rates due to capital controls. Whereas Shambaugh classifies a
country to be pegged if it’s official exchange rate remains within a small band for sufficiently longer time.
LYS, RR and Shambaugh methods are classified as nominal exchange rate regimes with a common
characteristic that de jure classification is untrustworthy. Contrasting to their commonalty, the difference
between this three de facto systems are that they are available for different spans of data across both
countries and time. Most of the classifications are annual but RR is monthly. There is also difference in
number of classification, for example RR includes fifteen while Shambaugh includes only two (peg and
non-peg). There is difference in volatility as according to LYS, a country changes its exchange rate regimes
on an average of every five years where in case of RR, it changes less than once in every twenty year
showing more stability.(FFF,PDF). Thus the Classification of exchange rate regime can often be misleading
and hence there have been few studies which show the behavioural measures of exchange rate policies.
IMF measure which is based on the staff’s judgement of the policies is the one such example for
behavioural measures. (Bubula and Ötker-Robe,2002).

19
2.5.1 Classification of exchange rate regimes
Ghosh, Gulde and Wolf (GGW,2003)
GGW uses data on 167 countries to classify de jure and de facto exchange rate regimes for the period
1970-1999. This study presents 15 detailed categories for de jure regimes and 3 categories for de facto
regimes (also used for de jure regimes). IMF classification was used for de facto classification and to a
large extent for de facto as well. CWG was able to find a relative frequency distribution of the IMF de jure
classification for every year in which distribution has been divided into three broad categories: pegged,
intermediate and float. In case of de facto classification CWG creates a composite statistics which
represents annual behaviour of nominal exchange rates. One of the most critical assumptions made in
this study was that the relative frequency distribution of the IMF de jure regimes and de facto regimes
are same. This assumption lacked in theoretical explanation and due to this they recreated the
classification to consensus classification. This new classification was based on the episodes which were in
the same categories of de jure as well as de facto exchange rate regime. The major drawback of this new
classification was that it couldn’t control shocks in exchange rate market (i:e it couldn’t differentiate the
intervention behaviour for the exchange rate volatility.)
Reinhart and Rogoff (RR, 2004)
Reinhart and Rogoff’s classification uses data from 153 countries for 1946-2001. This study enables to
develop a new category called freely falling regimes which is similar to freely floating with high volatility
in exchange rate. This freely falling regime is linked with high inflation and thus RR uses to two rules to
classify this regime by twelve month inflation rate higher than 40 percent and six months immediately
following a currency crisis. This method includes a statistical de jure verification procedure but is
conditional depending upon the non-existence of the parallel exchange rate market rates. If the parallel
rates are available then it directly generates the classification result. This procedure mainly employs the
mean absolute percentage changes of monthly exchange rates mainly over a 5- year rolling window(if not
2-years window instead)guided with inflation data and other sources of material. Other exchange rate
regimes besides freely falling are classified according to their levels of band of percentage change such as
1%, 2% and 5% over the rolling period of 5 years. Since multiple rates and parallel market have existed
quite often, it employs a market rate rather than official rate. This is one of the most important
contributions of RR. Moreover RR also successfully shows the comparison of frequency distribution of
each country currency with free floaters such as US Dollar/Euro, US Dollar/Yen, US Dollar/ASD, US
Dollar/NZD from post 1973 period. The only drawback of RR is that it does not control shocks in the
foreign exchange rate market since it take only behaviours of exchange rate into consideration. When RR
differentiates managed floating from free floating, the null hypothesis is that the episodes are considered

20
to be free floating. Thus it can be said that this study proposed by RR is more biased towards free floating
as it is extremely conservative about countries adopting managed floating. The observation with large
volatility of exchange rates and high inflation are separated from the freely floating using the term “freely
falling” and hence makes freely floating free from serious inflation problems. One important issue
regarding the exchange rate regime is the discipline effect as it guides any researcher using RR’s
classification to be pre-occupied in their conclusion that free floating is good against controlling inflation.
Levy Yeyati and Sturzenegger (LYS, 2005)
LYS classified exchange rate regimes across 183 countries between 1974 to 2004 with episodes divided
into five categories such as flexible, dirty float, crawling peg, fixed and inconclusive based on three
classifying variables.(exchange rate volatility, volatility of exchange rate changes and volatility of
reserves). LYS measured the exchange rate volatility by averaging the absolute monthly percentage
changes in the nominal bilateral exchanges rate during a calendar year. The changes in exchange rate
volatility can be measured as the standard deviation of the monthly percentage change in the exchange
rate. Computation of the volatility of reserves in LYS model involved several steps, firstly subtracting
central government deposit from net foreign assets and then divides it by the exchange rate. Secondly
they computed first order differenced value and then divided it by lagged money base which is
considered to be their intervention proxy. LYC uses cluster analysis with three classifying variable which
produces groups from episodes in such a way that distance between the episodes and centre of group
remains the least. According to LYC ,k-means cluster analysis has advantage of avoiding any discretion
from the researcher except selection of the classifying variables and assignment of clusters to different
exchange rate regimes and our method evaluates the deviations in the classifying variables relative to the
world norm, rather than to some ad hoc reference cases.
It is essential to verify such rules as there is no economic rationale behind them. Moreover the five
categories classified in LYS may not capture all possible cases as they divide each classifying variable into
two categories with high and low level. Thus in total there would be eight cases including five cases with
additional three cases such as (i) low volatile exchange rate, highly volatile exchange rate changes, and
low volatile reserves (ii) low volatile exchange rate, highly volatile exchange rate changes, and high
volatile reserves (iii) highly volatile exchange rate, low volatile exchange rate changes and low volatile
reserves. Although the first and second cases can be ruled out due to fact that volatile exchange rate
cannot have highly volatile exchange rate changes but the third case can be possible which implies that
LYS should have taken six groups instead of five. The third group can be regarded as flexible regime or
inconclusive depending upon the episodes. It also lacks in showing a clear defined reference variables for
each exchange rate regimes. It also shows minimum, centroid and maximum values for each exchange
rate regime due to which each classifying variables are overlapped across exchange rate regimes.
2.6 Indian Exchange Rate Regime
There has been considerable evolution in the exchange rate regime of India over the reform years. It has
been shifted from nominal fix to one way nominal movement over the nineties to two-way with low
volatility indicating a tightly managed exchange rate to a greater volatility and nominal movement after
the global crisis. Due to liberalization and development of foreign exchange and assets markets, India

21
adopted the managed floating exchange rate regime from March 1993 which marked the new era of
market determined exchange rate regime of the rupee with provision for timely intervention by the
Central Bank. According to Reinhart and Ragoof(2004) Indian currency regime during the period of 1979-
2001 was peg to US dollars. This was also supported by Cavoli and Rajan (2008), in which they said that
INR is de facto soft peg to US Dollar. According to IMF AREAER , Indian rupee has been classified as
managed float. Reserve Bank of India which is the central bank of India stated that the objective of the
exchange rate management has been to ensure that the external value of the Rupee is realistic and
credible as evidenced by a sustainable current account deficit and manageable foreign exchange
situation. Subject to this predominant objective, the exchange rate policy is guided by the need to reduce
speculative activities, help maintain an adequate level of reserves, and develop an orderly foreign
exchange market”. Thus Indian rupee is market determined exchange rate which implies that there is a
currency market and the exchange rate is not determined by the authorities indicating that exchange rate
are independent of government decision and totally dependent on fluctuation in market. However, the
RBI actively trades in the market with aim to maintain volatility and influence the market to some extent.
According to Patnaik and Shah (2009) price coming out of the market does not necessarily reflect the true
market demand and supply. Recently published literature suggest that India is de facto pegged exchange
rate where policy maker and government institution can influence the bilateral exchange rate against the
US dollar (shah et al, 2005; Frankkel,2009). The annual volatility of INR/USD from 1993-2006 was 4.2%
while the annual volatility of USD/JPN rate was 11.6 %(Patnaik and Shah, 2009). This shows that INR/USD
has low volatility where as all other measures of exchange rate have more volatility.
The model proposed by Frankel and Wei(1994), also known as the Frankel and Wei Model, utilizes a linear
regression model based on cross currency exchange rate with respect to numeraire to estimate the
basket weight of the home currency is pegged to. Recent work by Bénassy-Quéré et al. (2006), Shah et al.
(2005), and Frankel and Wei (2007) model is also similar to the Frankel and Wei model but the only
difference in their approach was that the use of arbitrary numeraire such as Swiss Franc or IMF’s SDR
(Special Drawing Right is an unit of IMF which is composed of basket of most important currency). This
methods were based on moments approach and thus proved to be advantageous over Frankel(1993) as it
was independent of the choice of a numeraire currency.
According to Persaran et al (2004) structural break were considered to be common phenomenon in many
macroeconomic and financial time series. He also stated that the forecasting models which ignored
structural break were supposed to yield poor forecasting than compared to model with use of structural
breaks. Frankel and Xie(2010), were able to estimate the result for India’s structural break in its exchange
rate regime by introducing their synthesis technique in multiple structural change model proposed by Bai
and Perron(1998).According to Frankel-Xie, there were five structural breaks in India’s exchange rate
regime from 2000- 2009(Structural Breaks: 11/3/2000, 6/24/2001, 1/14/2002, 9/30/2003, and
3/4/2007)in which India apparently fix its exchange rate during two of the sub-period (between
11/3/2000--6/17/2001 and between 1/14/2002—9/23/2003) but pursued to manage float in other four
sub-periods. Their study showed that Dollar was always the most important anchor currency with Euro
also having significance in four out of the six sub-periods and Yen in other two. In contrast to Frankel and
Xie , Patnaik and shah(2009) found only three structural break by using Swiss Franc as their numeraire

22
currency during the India’s exchange rate regime and only one structural break in the same shorter
period(2000-2009) of Frankel and Xie. Their structural breaks were during the period of 3/10/1995,
8/28/1998, 3/26/2004. Patnaik and Shah (2009) observed that India apparently fixed its exchange rate
during two of its sub-periods between 3/19/1993 - 3/3/1995 and also between 8/28/1998 - 3/19/2004.
Patnaik and Shah (2009) concluded that although dollar being an important anchor currency, euro was
the currency which was gaining more prominence. This contradiction was due to the fact that both used
different approach for estimation i:e Patnaik and Shah(2009) used the weights of basket currency
whereas Frankel and Xie(2010) used synthesis equation to estimate the degree of exchange rate
flexibility. Another valid reason for the difference can be the use of numeraire in both the approaches.
Patnaik and Shah (2009) uses Swiss Franc and Frankel and Xie(2010) uses IMF’S SDR as their respective
numeraire. The theoretical studies suggest that Patnaik and Shah(2009) didn’t provide the exact
specification for their Bai-Perron methodology which they successfully did in their previous studies.
Moreover Patnaik and Shah (2009) also lacked in their analysis. However the empirical studies shows a
different perspective as the structural breaks suggested by Patnaik and Shah(2009) in March 2004 was
justified by greater fluctuation in data related to reserves. Thus based on studies of Frankel and Xie(2010)
and Patnaik & Shah (2009) , it can be concluded that although US Dollar may be anchor currency but Euro
in recent time has proved to be more prominent in determining the fate of Indian Rupee.
US dollars which was considerably devalued in 2008-09 due to financial crisis in United States was gaining
strength in 2012-13 due to oil, gold and metals prices(Alternate assets which determines the value of
currency) were suddenly more in favour of US dollar indicating their comeback from economic crisis.
Moreover, Euro Zone crisis directly affected the Indian Rupee as it was increasingly dependent on Euro
with speculators playing an important role in determining the fate of rupee as they considered US dollars
to be safer for investment than Euro or Indian rupee. These forced importers to buy more dollars in order
to hedge their position in foreign exchange market due to sharp increase in dollar rates while the
exporters kept on holding their dollar reserves speculating that rupee will depreciate more in future
times. According to the recent report, FII’s(Foreign Institutional Investors) which are considered to be
one of the major speculators started shifting from Indian markets with a decrease from 19.2% in 2010 to
3.8% in 2011. Thus due to support of speculators which took benefits of liberalised managed exchange
rate regime of India caused increasing demand of dollar vis-à-vis with the supply of Indian rupee causing
devaluation.(Singh,2013).
Thus taking consideration of Williamson(1996) and Willet(2003,2006a,2006b) which stated that managed
float can be a reason for devaluation and also keeping the finding of Frankel and Xie(2010 and Patnaik
and Shah(2009) in mind which concluded that US dollar was the anchor currency and Euro was gaining
dominance in determining the fate of Indian rupee. Hence it can be concluded that managed float
exchange rate regime of India liberalised the opportunity of speculators to cause more volatility in foreign
exchange market in favour of US dollar as the US economy/US dollars was strengthening with
combination of euro zone crisis which in-turn caused depreciation of Indian Rupee.

23
2.7 Summary
This chapter reviewed the extent of literature on factors leading to government instability and its role in
causing currency depreciation. This provided a sound platform to establish a relation between UPA 2
government instability with depreciation of the Indian rupee. This chapter also summarised the different
classification of exchange rate regime. Finally, the Indian exchange rate regime has been thoroughly
studied and the factors which resulted from them were assumed to cause depreciation of the Indian
Rupee.
Chapter 3
Research Methodology
3.1 Research Paradigm
Burn(1997) described Research as an systematic investigation or an inquiry whereby data are collected,
analysed and interpreted in a way to described, understand and predict or control an educational
phenomenon or to empower individuals in such context.(Merton,2005,p2). Putting forward the definition
of Research, Uma Sekaran(2003) described Business Research as similar to Research with some additional
features like critical, objective based investigation or inquiry for a specific problem to find its solution or
answers. O’Leary(2004) argued that research carried out in recent times are far more complex than
compared to the research carried out thirty-forty years ago due to the increasing number of research
methods specifically in social and applied science. Research Paradigm can be referred as a theoretical
framework, distinct from theory (Metens,2005;Bogdan&Birklen,1998) which influences the way
knowledge is been studied and interpreted. Bogdan&Birklen (1998,p.22) defined Paradigm as “a loose
collection of logically related assumption, concepts or propositions that orient thinking and research or
philosophical intent or motivation for understanding a study.(Cohen&Manion 1995,p.38). Mac Naugton ,
Rolfe and Siraj-Blatchford(2001) argued that paradigm can be defined only if it has three elements: A
belief about the nature of knowledge , a methodology and criteria for validity. Thus keeping the
definitions in mind, Research paradigm can be said as the initial yet the most crucial part of research as
the choice of paradigm will help to set down the intent, motivation and expectation for the research.
Avoiding Paradigm at the initial step will subsequently obliterate the existence of methodology, methods,
literature and research design. There has been wide classification of research paradigm, some authors
prefers to discuss the interpretive framework in terms of knowledge claims
(Cresswell,2003);Epistemology or ontology; or even research methodologies(Neuman,2000) rather than
just referring to paradigm.

24
Ontology and Epistemology has their own specific importance and provides different influence to the way
of approaching the process. Ontology is mainly concerned with the nature of the reality as it raises
question in researchers assumption’s about the way the world operates and its commitment held
towards its specific views.(Saunders et.al, 2012). There are mainly two aspects of Ontology, one is
objectivism and the other is subjectivism. Objectivism is generally associated with existence of entities
which are independent of reality whereas subjectivism shows that social phenomenon are the outcome
of perception and consequent action from those social actors who are concerned with their
existence.(Saunders et. al ,2007). Subjectivism is closely associated with “social construction” as Remenyi
et al. 1998, stated that it essential to study the details of the situation so that one can understand the
reality or the reality working behind them. Thus the researcher’s view of reality is the core of all other
assumption. Epistemology concerns about the study of the nature of knowledge. It focuses on “how is it
possible and if it possible what knowledge should be gained from the world. (Hughes and Sharrock 1997:
5). According to Rosenau 1992 Epistemology concerns with nature, validity and limits of inquiry. Thus it
can be said that Epistemology constitutes for acceptable knowledge in a field of study.(Saunders et al.
2007). There are mainly two categories in Epistemology, one which is associated with resource/science
called as positivist philosophy and second which is associated with feelings called as interpretive
philosophy.
Positivism can be referred as ‘Scientific method’ or ‘Science research’ based on its rationalistic, empiricist
philosophy which was originated by the ideas of Aristotle, Francis Bacon, John Locke, August Comte,
Emmanuel Kant.(Metens,2005,p.8). Positivism came into existence as a philosophical paradigm in 19th
century mainly due to the contribution of August Comte as he proposed that “only scientific knowledge
can reveal the truth about reality.” (F.kabaud.2003). It was later in 20th
century , positivism got its formal
designation of a dominant scientific method through the efforts of Gustan Bergmann, Rudolf
Carnap,Herbert Feigl, Phillip Frank, Karl Menger, Olto Neurath and Moritz Schlick.(Member of Vienna
Circle). Positivism mainly adopts the David Hume’s theory of nature of reality(ontology) where he
believed that reality consist of atomistic and independent events and only scientific approach can
generate linkage between the events occurring simultaneously. Moreover he also believed that
philosophical and logical reasoning won’t give firm conclusion as it will sever the linkage between
independent events. In contrast to above theory, Positivism also adopts an epistemology philosophy
proposed by René Descartes’s (theory of knowledge) where he believed that reason is the best medium
to generate knowledge about the reality. He suggested that deductive methods which are the best way to
interconnect the independent events can also be related to reality and hence reality is ordered as well as
deducible. Although O’Leary (2004) argued that post positivism (replacement name for positivism after
world war two) is inductive and exploratory (Qualitative) in nature but still it has been more widely
followed that positivistic paradigm is deductive and quantitative in nature.(Mertens,2005). Thus
positivistic paradigm can be referred to real events which can be observed by empirical means and
explained with logical analysis. Positivist philosopher will mostly use the existing theories to develop a
strong background for the facts which are credible enough to be accepted in real world. The positivist
would be more concerned with facts rather than its impression about the outcome of the
research.(Remenyi et al. 1998). The positivist approach enables the researcher to proceedits research in a
value free way. Thus the research is independent of the outcome of the subject of the research.(Remenyi

25
et al. 1998). It is expected to from positivist researcher to carry out highly structured methodology in oder
to replicate the theories which were used to create the hypothesis.(Gill and Jahnson,2002). Moreover
these methodologies consist of micro level experimentation in a favourable environment which
eliminates the complexity of the external shocks (world).(F kabaud,2003). Hence the result which would
be obtained will be valuable in terms of depth in nature of reality but will lack in external validation.
Positivistic approach doesn’t help in finding the root cause of the problem but instead it solves the
outcomes from that problem.
Interpretive or constructive paradigm was adapted from the philosophies of Edmund Husserl’s
phenomenology and Wilhelm Dilthey’s (with other German philosopher’s) study regarding
‘hermeneutics’.(Mertens,2005,p12). In phenomenology, humans are in continual process of interpreting
the actions of others with whom they interact which ultimately leads to adjustments to their own
meaning and action in the social world around them.(Saunder et. al 2012). Interpretive paradigm refers to
“the world of human experience” where Cohen and Manion 1994 suggested that “reality is socially
constructed”.(Mertens,2005,p12). It mainly involves the individual or participants views about the
situation which is being studied (Cresswell,2003,p8) thus enabling them to understand the impact on the
research based on their own experience and knowledge(background). Thus this paradigm emphasizes
more on the role of human as a social actor rather than being more conservative on objective nature.
This philosophy allows the researcher to accept an emphatic stance, challenging their own perspectives
with perspectives of social world. Interpretive paradigm is widely as ‘highly appropriate’ paradigm for
business and management studies specifically in organization behaviour, Human resource management
and marketing.(Saunder et al.,2012). In contrast to positivists who are inefficient in external or complex
situation, interpretive paradigm works efficiently within the complex situation with being unique as well.
Moreover it doesn’t begin its research with theories but instead they develop their own theory or pattern
of meaning, thus making interpretive researcher highly reliable on qualitative data which enables them to
deepen their description. The main drawback of this approach is that they lack in theoretical application
as it only focus on human behaviour thus making its results immeasurable over the time, where as
positivistic approach enables a researcher to measure its result before, after and over time. (Patton,2010)
Thus positivistic paradigm is more quantitative nature in terms of collecting the data; it follows
deductive approach for analysing data and has objective conception of reality. Moreover the quantitative
method enables the positivistic researcher to measure the result on the basis of predetermined response
categories. Whereas Interpretive paradigm is more qualitative in nature; it follows inductive, interpretive
and constructive approach for analysing data and it focuses more on words than
numbers.(Husserl,1936;1965,Ram-berg&Gjesdal,2009).

26
Taking consideration of all the above points, I have decided to use positivist paradigm to imply my
phenomenological philosophical stand for this study. Positive Paradigm as explained earlier allows
generating and testing hypothesis or question on the basis of established well-known theories. Thus using
the above mention characteristics of this paradigm in my research has enabled me to create a sound
platform to generate two questions regarding my research title ‘Depreciation of Indian Rupee’ which can
be tested. Moreover positivist paradigm enables me to research a real event ‘depreciation of the Indian
Rupee’ which occurred during the year 2011-2013, by observing it empirically through theories and
analysing through logical testing such as survey. As positivistic paradigm is quantitative in nature, it will
not only help me to cover up wide range of situation but also it would be less time consuming and
economical as well. My research is mainly based on two independent variable a) UPA 2 Government
Instability b) Indian Exchange rate regimes. Positivist paradigm helps to interlink or correlate independent
variables with factors leading to that independent variable. In my research the first independent variable
is UPA 2 Unstable Government which is interlinked with corruption, coalition government and impact on
investors as they were considered to be main cause of government instability which caused depreciation
of the Indian Rupee and second independent variable would be Indian Exchange rate regimes which is
interlinked with Euro zone crisis, rise in demand of US Dollars, speculators role which caused depreciation
of the Indian Rupee. This will enable the researcher to test the credibility of the question and will also
help to find the actual cause of depreciation. A key component of this approach is that it is scientific,
value free and objective based. In this way, my research would be more objective based with no human
attachment involved during collection of data thus eluding my research to be bias. Therefore Positivist
philosophy being multifaceted in nature is aptly chosen by the researcher as it embraces various
theoretical aspects of the particular research and thus allowing systematic, objectivist and highly
structure method for evaluation.
3.2 Research Approach
Research Approach is a methodological issue which rely on the research paradigm and linked with
research question. It is important for every researcher to specify its research approach as every scientific
inquiry involves deduction or induction which entangles between logic and observation (Barbbie,2010).
Thus the research approaches are mainly divided into two categories deductive approach and inductive
approach.
Deductive approach often known as “testing a theory” mainly includes the development of a
theory/hypothesis/question which helps to design a research strategy so that the given
question/theory/hypothesis can be tested.(Saunders et al.2003). According to Marshall (1997) deductive
approach can be defined as a technique through which knowledge can be developed in more mature field

27
of enquiry involving a sort of logical leap. Generally data’s are collected to test the
theories/question/hypothesis. Francis bacon described deduction as descending process which involves
the top down approach. It mainly starts from theory which formulates the basis for question/hypothesis
to be tested by collecting information from the observation. Deduction approach involves a highly
structured methodology (Gill and Jhonson(2002)) to ensure reliability of theories. It has three main
characteristics operationalisation, reductionism and generalisation. Operationalisation characteristics of
deduction states that the concept is operationalised so that results coming out of it can be measured.
Reductionism states that the problems as whole can be better understood if they are reduced to simplest
element. Generalisation enables the conducting research results to be generalised so that the finding can
be equally valid to other research setting.(Saunder et al. (2007))
Alternatively inductive approach also known as “building a theory” in which researcher start the
research with collecting data so that a particular theory can be developed.(Saunders et al., 2003).
Marshall(1997) defined inductive approach as knowledge which begins with collecting facts and than
trying to find orders in them. Inductive approach is a deductive approach “turn upside down”. It involves
the human characteristics inter-linked with independent variables. Moreover it enables the researcher for
an alternative explanation which in case of deductive method is not possible as it uses rigid methodology.
Inductive approach is more concerned with the context in which the events are taking places thus making
it qualitative in nature. Small sample of subjects are considered to be more appropriate than large
numbers (quantitative) in inductive approach. This qualitative nature enables researcher to establish
various views on the phenomenon which is taking place.(Easterby-Smith et al. 2008)
Thus it is quite clear that deductive approach is quantitative in nature where as inductive
approach is qualitative in nature. As such the researcher is using positivistic paradigm in this following
research, deductive approach becomes an obvious choice for the selection of research approach .The
literature review plays an important role in justifying the research and identifying the study in
quantitative approach than qualitative approach. (Creswell & Plano Clark, 2007).Literature review of this
research with title “Depreciation of the Indian Rupee” forms the basis for two research question which
are as follows:
Is it due to the consequence of UPA 2 Government Instability?
Or
Is it due to shifting pattern in exchange rate regimes of India?

28
The first question is developed from Morris and Shin (1998) model of currency crisis which states
depreciation of currency is linked with government instability. UPA 2 which was the ruling government
from 2009-2014 lacked in making reforms, involved in corruption and with its inability of making any
clearance on bills due to coalition government which created policy paralysis and fear in the commitment
of bureaucracy. Thus UPA 2 government instability proved to hurt the sentiments of speculators and
investors resulting into disruption in business confidence thus ultimately causing devaluation of the
rupee.
Whereas as the second question is developed from the statement of Williamson (1996) and Willet (2003,
2006a, 2006b) which stated that managed float can be a reason for depreciation. There have been
various theories classifies the exchange rate regimes for a particular countries such as Reinhart and
Ragoff(2004), Levy Yeyati and sturzenegger (2005) which specified that Indian exchange rate regimes
went under a drastic change from fixed to managed float exchange rate regimes. Moreover studies of
Frankel and Xie(2010) and Shah & Patnaik(2009) suggest that US dollar was anchor currency but Euro was
the currency which was gaining dominance. Thus the nature of exchange rate regime (managed float with
US and Euro as dominated anchor currency pegged with India Rupee.) adopted by India can also be
responsible for devaluation of Indian Rupee.
Thus the literature review in this research is typically brief and guides the research questions which won’t
be possible in qualitative research. The deductive approach which is quantitative in nature enables the
researcher to use statistical analysis to test the credibility of the proposed questions and find the actual
cause of depreciation of Indian Rupee. Quantitative approach will help the researcher to obtain a visual
representation in the form of graphs, plots, charts and table for the data where as in qualitative approach
words of the participants are given more importance which are then used by researcher to
analyse.(Creswell,2005). Thus the conclusion obtained from quantitative approach would be generalised
like law as it would be obtain from logic, evidence and argument (Trochim,2006), while in qualitative
approach it would be varied as it depends on how data are collected.
3.3 Research Strategy (Survey)
Research strategy can be defined as “the general plan of how the researcher will go about
answering the research question.(Saunders et at. 2009). Bryman(2008) defined research strategy as
“general orientation to conduct the research” whereas Remenyi et al. (2003) stated that research
strategy provides the overall direction for the research to be carried out. According to Saunders et
al.(2009) research strategy is based on objectives of the research, amount of time available to carry out
research, the extent of the resource available to gain knowledge in the existing subject area and finally
but most important “research question”. While Yin(2003b) stated that research strategy is based only on
three factors or condition (a) the type of research question,(b) the amount of control on actual

29
behavioural events by the researcher,(c) the degree of focus on the historical or contemporary events.
Yin(2003b) and Saunders et at.(2009) suggested that research strategies are of various type and it would
in the sole interest of researcher to decide the appropriate strategy depending on above mention points.
The various common research strategies used in business and management studies are case study,
survey, experiment, grounded theory, cross sectional studies, longitudinal studies and
ethnography.(Easterby-Smith et al., 2008; Collis and Hussey, 2009; Saunders et al., 2009). Out of this
various strategy ‘Survey’ and ‘Case study’ are most commonly used and would be described in my
research as well.
According to Merriam Webster dictionary the word ‘Survey’ got its name from Anglo-French
word ‘Surveer’ which means to look over. This method was invented by Lazarsfeld, Gallup and Cantril.
Survey is process which includes the systematic collection of data from a sample of group or population
through some form or direct questioning method such as questionnaires, telephone interview or face to
face interview.(Closky,1969). It is considered to be descriptive quantitative research method which is
mainly used for collecting primary data from a sample of individuals or targeted population through
verbal or written communication. According to Bryman(2001), survey has three distinct characteristics,
firstly it helps to generate quantitative description of the population which is examined, secondly it helps
to collect the information from the target population through predefined and structured questions,
thirdly the collected information can be generalised to whole population. Survey method can also be
considered as social scientific research method which focuses on people and their beliefs, opinions,
motivation, attitudes and behaviour.(Kerlinger,1973). Social scientific nature of survey is mainly based on
two variables: Sociological and Psychological. A sociological variables deal with the individuals ascribes
which changes according to their membership in a particular social group: sex, income, age, socio
economic status, political and religious affiliation, level of education, occupation and so on, whereas
psychological variable includes the opinions and attitudes of an individual at one side and behaviour at
other side. In modern era, survey methods are mainly dependent on psychological rather than
sociological variable in terms of collecting the primary data.(Mathiyahangan and Nandan,2010).
Rationale for Selecting Survey Research Strategy was mainly due to the fact that the survey methods are
generally used in positivist methodology which helps the researcher to test the proposed questioned by
finding the relationship between the independent variables.(Collin and Hussey,2003). Burn (2000) stated
that research strategy should be chosen in accordance with philosophy and approach used in research. In
this research the researcher uses Positivistic philosophy (paradigm) and deductive approach which
indicates the suitability of survey method as a chosen research strategy. The research questions which
are generated from established theories has to be checked for its credibility which can be achievable by
survey method as it will quantify the linkage between independent variables. Moreover Survey method
will enable the researcher to generate quantitative description of the targeted population or samples
which in-turn will help to know their views regarding the depreciation of Indian Rupee. Due to the
generalising characteristics of Survey method, the result obtained from this research can be generalised
to the whole population. Time duration is another influential aspect for choosing survey method as it
proves to be time efficient yet result oriented objective based. Thus keeping research question, research
paradigm, research approach, extant of knowledge, available resource and time duration in mind,
researcher decides to use ‘Survey’ as its research strategy .

30
Table:1
Advantages of Survey Research strategy Disadvantage of Survey Research Strategy
 Data collection is faster than compared
case study.
 Data collection is relatively less costly
than those of case study.
 Survey data proves to be accurate if
sampling is probabilistic and realistic.
 Accessible over a wide range of
population.
 It is more ethical than compared to
experiments.
 Ecological validity is ensured.
 It is the only method whose results can
be generalised by collecting information
from almost any human population.
 Data obtained may be superficial.
 It may lack in external validity because of
in efficient sampling or non response
bias.
 It proves to be inappropriate tool for the
studies of multitudes.
 Social context of an individual
respondent is ignored and collection of
individuals cannot be treated as group.
 It lacks in dynamism.
(Mathiyahangan and Nandan,2010)
3.3.1 Alternate Research strategy (Case study)
Case study as described by Yin (1984) and Dul&Hah (2008) refers to a group of methods which
emphasizes on qualitative data. Case study can be considered as an historical methodology (Einsenhardt
and Graebner, 2007) which uses various methods to explore a single phenomenon in a natural setting,
enabling the researcher to attain in-depth knowledge over a particular field.(Collin and Hussey,2009).
Although being qualitative in nature, case study can also accommodate quantitative data depending on
the needs of research. (Yin 2003b,Gerring 2007). Data collection in case study is in a form of small
number of organization through methods like in-depth interview, participant observation and longitudinal
studies. Case study involves thorough investigation into a problem which enables the researcher to ask
penetrating questions which can bring out the richness of organizational behaviour. Case study is suitable
if the phenomenon which is taking place and its real life context are not distinguishable(Yin,2003a), which
is not the case in my research as the phenomenon of devaluation of rupee is well distinguished with
unstable government and exchange rate regimes based on the models and theories. Moreover case study
is not as efficient as survey when it comes to manipulating the independent variables and being more
time consuming as well. Case study being qualitative in nature increases the risk of improper
interpretation and it also lacks in power to randomize.(Kerlinger,1986). According to Lee (1989), Case
study has mainly four drawbacks when compared to survey: lack of Controllability, Deductibility,

31
Repeatability and Generalizability. Thus taking consideration of all the above point, survey method proves
to be most appropriate strategy for my research.
3.4 Research Instruments
Data collection is an essential part of any research as it provides information which leads to help in
analysis. Data collection plays a vital part in survey method as it not only needs careful planning but
careful monitoring as well. For the best outcome of data from the survey, the researcher has to ensure
that they do everything possible to maximise the response rate, ensuring that the data are collected in a
correct manner and checking that the data obtained are error free or it has least error in it.(method of
data collection, web). There are mainly five types of data collection method in survey: Personal interview,
mail questionnaire, panel survey, telephone interview, observation.(Kerlinger,1973). Choosing a data
collection method is very complex as it depends on number of factors such as research topic, sample
frame, characteristics of the sample and available staff and facilities. The strategy for data collection is
dependent on other factors as well such as amount of time available for the researcher to collect the
data, cost and complexity or nature of the questions.(Floyd and Fowler 2002,58). There are mainly four
things which lead to better quality of data: professional and ethical access as well approach to
respondents, putting more effort in data collection, researcher control in data collection and small
amount of good data serves as better option than having large amount with poor data.
Following is the table which indicates advantages and disadvantages of various data collection methods:
Figure 1

32
(Punch,2003,pg 41)
Thus Considering all the points mention above, the researcher decides to use close end mail
questionnaire as its research instrument /data collection method to conduct the survey.
3.4.1 Close end mail questionnaire
There are mainly two types of questionnaire either open end questionnaire or close end questionnaire.
(Bryman, 2001; Bryman and Bell, 2007) The researcher has decided to use close end questionnaire as a
mode of collecting data for the survey. Close ended questions limits the alternatives for the respondent

33
(Foddy, 1993: 127) and hence making the interpretation and analysis easier. (Colins and Hussey, 1997).
Remenyi et al,1998 suggested that the researcher can pre-specify its response category in close-ended
questionnaire on the basis of its assumption that the knowledge is already been well presented in
interest of the research. Close ended questionnaire enables the respondents to respond quicker with
ease. Moreover the answers from different respondents are easy to compare and interpret. Coding and
statistical analyse is more easy for researcher in this form of questionnaire then compared to open
ended. Although there are some weakness of close ended questionnaire as suggested my Remenyi et al
(1998) that data collected from such questionnaire are relatively superficial when compared with other
research instruments. Besides this it restricts the respondent to show their views regarding the particular
research topic.
3.4.2 Conducting Survey Questionnaire
The survey was conducted in the form close ended questionnaire which was sent to the participants
through email and social networking sites. The questionnaire was prepared using Google Drive which
enabled the researcher to achieve accurate and precise response of participants. Every response of the
participants were automatically printed in excel document through the help of Google Drive. A cover
letter was attached with the questionnaire while sending to various participants. To achieve more
accuracy in collecting data, a small description about the research topic and some definition of some
complex terms were attached to the questionnaire so that the respondent were aware of what they are
about to respond. (Witmer et al (1999). Participants were asked to fill sixteen questions which
approximately took 15 minutes to complete. Thus by asking the same set of questions to different
participants enables the researcher to interpret the large amount of data efficiently.(Saunders et al 2009)
.
The questionnaire were divided into four parts; categorical specification of participants, role and
factors for instability of the UPA 2 Government towards Depreciation of Indian Rupee, role and factors for
Exchange rate regime of India towards Depreciation of Indian Rupee and finally ,factors leading to
depreciation of Indian rupee. The first five questions fall into categorical specification of participants,
question 6 to question 10 fall in second part constituting the role and factors for instability of UPA 2
government towards depreciation of Indian Rupee, question 11 to question 15 constitutes third part
which fall in role and factors for exchange rate regime towards depreciation of Indian Rupee and the last
question 16 is about the factors leading to depreciation of Indian rupee. The questions from 6 to question
15 were measured on the basis of Likert Scale (1=strongly Disagree,5=strongly agree). The whole
questionnaire was analysed by using SPSS analytical tool. SPSS is software analytical tool acquired by IBM
which simplifies the work of researcher as it helps to analysis the given set of data in the desired format.
The researcher is mainly using correlation analysis and cluster analysis to carry out the research.
Correlation analysis is used in this research as it will serve to test or examine the credibility of the
proposed questions. This will enable the researcher to strengthen its assumption about its research
question as it is extremely significant the close ended questionnaire are based on strength of
assumption.(Remenyi,et al,1998). Cluster analysis would be carried out on categorical variables and on

34
the last question which is the core of the research ‘factors leading to depreciation of Indian Rupee”. Thus
cluster analysis will enable the researcher to identify the cause of depreciation of Indian rupee
categorically. Besides this the researcher has used various modes of graphical representation to describe
the outcome of questionnaire in best possible way.
(*The copy of cover letter and questionnaire is attached in the index)
3.5 Sampling method
Types of samples are an essential part of data collection process as the study of entire population is not
an easy task to accomplish. Hence the ideal samples with smaller set which can replicate the whole
population are considered in this research.(Bryman,2001). According to Collins and Hussey(2003),
sampling is method of choosing the best population which can show the same characteristics of the
required populace. Although there are some research in which large population are essential in order to
make the findings more generalized. There are mainly two types of sampling techniques: Probability and
Non Probability (Saunders et al,2007). Probability sampling is mainly used in Survey method where the
researcher assumes that given sample can replicate the whole population. In contrast to Probability
sampling, Non Probability samples include those samples which are purposely chosen. Moreover the
result obtain from such samples cannot be generalized to large population (Collins and Hussey, 2003;
Saunders et al, 2009).
As the researcher is using survey method as its research strategy and close ended questionnaire as its
data collection tool, it’s an obvious choice to use probability sampling as the sampling method. This will
enable the researcher to generalize the finding and will also help to replicate the finding to the whole
population. The researcher has chosen 60 samples with both the genders male and female. Besides this,
samples with different occupation like student, working professionals, employers and those who do not
fall in the above category were also taken into consideration. This was necessary as this research is based
on factor or factors which caused devaluation of Indian Rupee from the period of 2011 to 2013. Thus by
including such samples will enable the researcher to categorically identify the root cause of depreciation
of Indian rupee. Moreover samples staying in India and out of India were also taken into consideration so
as to verify that assumption of cause of depreciation of Indian rupee can be generalised for everyone.

35
3.6 Ethical consideration
The researcher has been concerned about the ethical issues from the start until the end of the research
process. Research should always be carried out ethically regardless to what data collection technique has
been selected by the researcher.(Saunders et al ,2012). According to Blumberg (2005) ethics can be
defined as a moral principle which directs one’s behaviour towards the other. A research is ethically
sound only if the methodology adapted is appropriate with morally concerns attached to it.(Saunders et
al,2007). Ethical consideration is an integral part of research and cannot be forgotten at any stage of the
research.(Miller, et al,2008).
During the whole process of research, the researcher has considered several ethical issues. The identities
of the person were kept confidential as no one was required to specify their names on the survey during
the data collection period. Cover letter was attached with every questionnaire summarizing the details of
the researcher and acknowledging their efforts to fill the survey. It was specifically written in cover letter
that no one is forced to fill this survey and its open invitation to fill up this form. The participants were
eligible to leave survey whenever they need to and were assured about their anonymity. Moreover they
were also given the authority to complain about the research or researcher if they find it inappropriate in
any case.
3.7 Strength and Weakness of Methodology
Researcher has used positivist paradigm which enables to achieve a scientific approach to this research.
Positivist paradigm is quantitative in nature and adapts a deductive approach towards the research. It has
mainly three characteristics operationalisation, reductionism and generalisation which have been used as
a core concept of the research by the researcher. Due to this concept, researcher has been able to
deduced two questions for this research which can be evaluated or tested by statistical methods. As the
research being quantitative in nature, researcher is able to quantify its relationship between two
independent variables: UPA 2 Government Instability with the factors which lead to government
instability (Corruption, Coalition government, effect on investors) and Exchange rate regime with factors
like role of US Dollars and speculators, Euro Zone crisis which were outcome of liberalized form (Managed
Float) exchange rate regime of India. Thus due to this quantification, the researcher is able to test the
credibility of the question by using statistical method like correlation analysis. Hence positivist approach
has enabled the researcher to measure and generalise its findings. Researcher has used survey method as
its research strategy which has enabled the researcher to differentiate the root cause of Depreciation of
Indian Rupee categorically. Moreover survey method being cost effective and less time consuming has

Factors Behind the Depreciation of the Indian Rupee

Factors Behind the Depreciation of the Indian Rupee

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (6)

Similar to Factors Behind the Depreciation of the Indian Rupee

Similar to Factors Behind the Depreciation of the Indian Rupee (20)

Factors Behind the Depreciation of the Indian Rupee