(a) the effect of appreciation of Indian rupee on individuals, importers and exporters;
(b) whether the appreciation of rupee would effect India`s Balance of Payments; and
(c) if so, the details thereof?
(a) the effect of appreciation of Indian rupee on individuals, importers and exporters;
(b) whether the appreciation of rupee would effect India`s Balance of Payments; and
(c) if so, the details thereof?
MINISTER OF THE STATE IN THE MINISTRY OF FINANCE
(SHRI PAWAN KUMAR BANSAL)
(a), (b) & (c): Appreciation of Indian rupee would have different
impact on individuals, importers and exporters. It might lead to
reduced rupee value in the hands of recipients of forex flows and
to higher foreign exchange value for payments abroad. An
appreciation of rupee in both nominal and real effective exchange
rate terms would make imports cheaper and exports costlier. The
appreciation or depreciation of the rupee is determined by demand
for and supply of foreign currencies, which in turn are determined
by current account balances and capital flows in the Balance of
Payments.