Tuesday, December 9, 2025

If Indian economy is growing, why Indian rupee is sinking ??

 Indian rupee is weakening against Dollor, hitting a record low of 90 rupee for 1 dollor.


But Indian economy is growing......!!!


Key factors contributing to rupee decline    ------


1.  Global dollor strength 

                  Higher interest rates in US attracting capital away from emerging market like India. It strengthens dollor.



2.  Trade deficit 

                    India's import of crude oil and electronics is widening the trade deficit putting pressure on rupee.



3.  Capital outflow 

                  Foreign investors are withdrawing funds from Indian markets.



4.  High import costs

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