(a) the details of the rupee-dollar rate during the last five years;
(b) whether the value of rupee has come down with compared to the previous years, if so, the details thereof;
(c) the steps taken by the Government to address the crucial issue of depreciation of Indian rupee; and
(d) the total amount of black money extinguished following demonetisation?
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PON RADHAKRISHNAN)
(a) & (b) The average rupee-dollar exchange rate during the last five years is given in Table 1. Rupee depreciated by about 11 per cent, on an average, from Rs. 61 per US dollar in 2014 to Rs. 68.36 per US dollar in 2018 (up to December 19, 2018).
Table 1: Average US$ / INR Closing Rate
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Calendar Year Rupees per US dollar
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2014 61.03
2015 64.16
2016 67.19
2017 65.12
2018 (upto December 19, 2018) 68.36
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Source: Reserve Bank of India.
During 2018, the rupee witnessed a general depreciating trend up to early October
due to rising crude oil prices and rising interest rates in the US, international trade
concerns and geo-political issues resulting in foreign portfolio investment outflows.
The rupee touched a low of Rs.74.49 per US dollar intra-day on October 11, 2018. However, the rupee recovered subsequently and closed at Rs.70.40 per US dollar on December 19, 2018. The general appreciating trend of the rupee since October reflects the easing of crude oil prices, and net foreign portfolio inflows among other factors.
(c) The exchange rate of rupee is market determined. The Reserve Bank of India (RBI), however, intervenes in the domestic foreign exchange market to manage excessive volatility and maintain orderly conditions without having any fixed target or band for the exchange rate.
(d) One of the instruments to assess the reduction in black money is to view the post-demonetisation increase in direct tax revenue and direct tax filers, as compared to pre-demonetisation period. The details regarding the numbers of returns filed and direct tax collected in pre and post demonetisation years, is given in Table-2:
Table 2: Direct Tax collection and number of returns filed
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Years Direct Tax Growth in No. of Returns Growth in No. of
Collection Direct Tax filed (including Returns filed
(Rs. In Crores) Collection revised returns) (in percentage)
(in percentage)
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2014-15 695792 ----- 40433614 -----
2015-16 741945 6.6 46304045 14.5
2016-17 849713 14.5 55709086 20.3
2017-18 1002741 18.0 68532510 23.0
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Source : Incometax.gov.in
The year 2016-17 which included some impact of demonetisation, saw significant growth in direct tax collection and number of direct tax filers as compared to 2014-15. The growth continued in 2017-18 as well.
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