Impact of the exchange rate on the economy
Keywords:
Consumption Expenditure, Exchange Rate, Export Competitiveness, Labor Productivity, Foreign Tourist Arrivals, Managed-Floating RegimeAbstract
It analyzes the effects of changes in the exchange rate of the Rupee–Dollar on major economic statistics in India during the period from 2019 to 2024, including export earnings, household spending, productivity levels and numbers of tourists from abroad. The study looks at secondary data obtained from the Reserve Bank of India, Department of Commerce, CEIC and Ministry of Tourism to run trend and regression analyses which analyze the impact of currency depreciation and appreciation on the Indian economy. According to the study, creating a managed-floating exchange rate system and making skill, manufacturing and tourism infrastructure more effective helps the country avoid risks and promotes stable growth.
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