#Rupee#Currency#Depreciation
India’s own history offers an important lesson. Between 2003 and 2007, the rupee remained stable and even strengthened. The rupee strengthened from approximately ₹48 per $ in early 2003 to around ₹39 per $ by late 2007, an average of 3% annually, reversing a decade-long trend of steady depreciation.
India saw high GDP growth of 8–9%, witnessing a strong investment cycle. Exports were growing rapidly. A booming IT and services sector provided steady dollar revenue for the country. Infrastructure, telecom and industry were attracting large investments.
The RBI was not selling dollars to defend the currency. It was buying dollars to stop the rupee from appreciating too quickly.
Growth was not just fast. Growth was creating productive opportunities. Growth stories attract headlines. Productive opportunities attract capital.
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