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The current scenario flow of foreign capital to reduce when compare with last
two decades. Lacking of inefficient market condition, highly dominating
budget against the small traders, Balance of Payment face the falling trend,
high investment in gold and decreasing the revenue collection of existing
foreign investors. These are all the factors to support decreasing rupee value
against the dollar.
Some of the measures taken by the RBI during the 2008 financial crisis were,
it massively reduced policy rates and the CRR. The repo rate and CRR were
reduced 4 times. The RBI also created a potential provision for primary
liquidity that had to be maintain which was of 5.6 trillion. Interest rates on the
foreign currency were raised on the deposits made by non-resident Indians.
These steps were taken to increase the supply of dollars in the foreign
exchange market to devaluate the U.S dollar against the Indian rupee.
The opportunities I possibly see with India now as the Rupee has depreciated
so much are very low. Maybe big exporters will be able to benefit from it
because most of their sales come from abroad. But for many industries, the
depreciating rupee has increased imported input costs, which isnt good and
can possibly slow down imports. Labor issues with relation to wages is also a
negative due to the depreciation of the rupee.