4. Deprecation Of Rupee
 More and more
rupees are brought in
our country and
dollars are sold
 More and more
rupees are sold and
dollars are brought

5. Impact
 ↑Imports
 ↑Depreciation In Rupee
 ↑Inflation
 ↑Interest Rates
 ↓Fixed Income
 ↓ Growth
 ↓Jobs
 Importers Sells Rupees & Buy Dollars
 There Is No One To Buy Rupee How Will It Appreciate?
 High Purchase Of Dollars → more Depreciation In Rupee

6. FY12 Estimates
Imports>Exports
$470bn>$320bn
-$150bn Trade Deficit
+$90bn Service Revenue
-$60bn Net Deficit

7. IMPORTS 35BN
11BN CRUDE
OIL
PRODUCTIVE
ASSET
1.REFINED
2.CREATES JOBS
ETC
10BN GOLD
UNPRODUCTIVE
ASSET
1. 1/3rd OF
IMPORTS
2. STORAGE
14BN OTHER
Productive And
Unproductive Assets

8. Reason
 Every year→1000tones of gold is imported
 Overall gold=total GDP almost
 What if no gold imports?
 Exports=imports
 So if u put the same money in investments your income will increase

10. Loan taken
 Imports faster than exports impacting stock market,corporates etc
 Why demand for dollar is high?
 India has taken loan from Europe
 Europe is worsened
 Foreign banks are not giving loans to India. Instead pressurizing to give
back loan→pressure on rupee

11. Chinese currency
 China not affected?
 Whole country is facing problems why not china?
 This is because Yuan is always remains stable neither depreciates nor
appreciates.

12. Solution?
 To balance demand & supply
 Proper implementation of monetary policy and fiscal policy in our
country
 Stability in imports & exports,etc.