Welcome friends, if 1 Indian rupee equals to 1 dollar, what if yes , what will the effect of it on our lives

It is an interesting game , which is predicted for the value of Indian rupees and dollars , at the time of independence, it was thought that it was possible, but it doesn’t happen, in fact the value of value of 1 dollar reaches to 80 rs

It is not happening in the last few years , it is happening from independence, why did it happen, and what will happen if 1 rs equals to 1 dollar , let’s start with basics , two currencies, in between the rates of conversion is called exchange rates

There are three types of exchange rates , fixed exchange rates , floating exchange rates, and managed exchange rates

Pros of this situation of Indian rupees

Buying Goods will be cheaperfor Indians in the International Market. Because this will make imports cheaper which is good for a developing country.

2. Buying luxurious goods will be cheaper. For example, an iphone will cost just INR 650 which is cheaper than the current market rate.

3. As import prices are cheaper, then petrol prices will be cheaperresulting in cheaper transportation cost of goods around the country.

Cons of this situation

Exports will be expensive if value of Indian rupee and dollar are the same. Because Indian products will be expensive compared to other competing nations. Indian exports have been booming well in recent years. If it is expensive, why would any country buy from India when other competitors can offer the same at cheaper price.

2. There would be no foreign Investment if Rupee equals dollar. The primary reason for a foreign investment in India is the cheapest labour cost. Foreign companies will not be investing in India when the cost of labour is higher compared to other countries.

3. Service sector contributes almost 60% in GDP and give 27% employment in India. Investment in IT Sector and Service Sector which contributes huge amount for the Indian Economy will be gone if 1 Dollar is equal to 1 Rupee. Now as 1USD= 1INR why any company will pay to an employee USD 75,000 or Rs.75,000 per month if they can hire someone outside who will do the same work for USD 3000 or Rs.3000. Eventually people will loose job which will increase unemployment.

4. When money does not come into India, it will result in complete economic slowdown.

5. Outsourcing of job in India will be stopped.