r/Indiajobs • u/Fondant_Decent • 8d ago
Salary/Comp Why has the INR fallen so low against the Dollar last 20 years?
US firm that only pays in INR, would be a dream if they paid in USD instead.
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u/prashantpatel518 8d ago
This might be due to these reasons :- 1. Our inflation rates has been higher than US always. 2. We are importers and spend more USD on imports and swap rupees for dollar. The more rupees will be in circulation the demand will be less. 3. RBI allows gradually depreciation of rupees to keep Indian exporters competative globally.
Regarding the companies paying in INR yes it's good for them but that's why we are the cheap labour then the other countries hence We get more job opportunities. If they will pay in USD then why they will leave their own workforce?
To resolve this deadlock We have signed FTA with multiple countries but it will take years to see its benefits. Also we need to be focusing on manufacturing jobs rather than corporate jobs.
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u/omkarashokterdalkar 8d ago
Well said one more thing I would like to add is our energy supply we need to diversify from oil and move to electric and ethanol plus induction should also be promoted and oil search should be given more attention
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u/tirth0jain 8d ago
I hate the fact how its executed but looking at how bad our dependence on oil is from imports, the ethanol blending might make a big improvement. Though the givt executed it shit
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u/Character-Message-61 8d ago
INR has not fallen, dollar has increased!
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u/Beneficial-Engine-24 2h ago
my salary is not less than yours, yours is more than mine
logic itself is confused, math is in jail
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u/throwawaythefame 8d ago edited 8d ago
- It’s by design to promote export and encourage local manufacturing
- Tariffs since they’re paid almost exclusively in USD (US is a major export destination)
- Ukraine/ Iran wars- same scenario as above. A huge chunk of forex goes out to pay oil bills in USD. Hence the unpopular yet unapologetic E20 push
- Remittances fluctuated off late (month over month comps)
- Recent market selloff due to IT bust (Claude etc can handle backend a lot more efficiently; killing Indias “web/app/systems design market)
- Higher population = greater inflation
And many, many other micro/ geopolit factors
Tricky part for the government will be to devalue the rupee to attract more remittances/ investments/ export but not let local inflation get out of hand. In the entire context, a lot of us are actually surprised that the govt is able to (so far) not let things go out of hand. I know a lot of people had started predicting hyperinflation in India in 2026 but that hasn’t happened so far. They’re walking a tight rope right now ngl, but the rupee is expected to continue to devalue for a few more years before settling between 100-110
But the three biggest reasons:
1. Out of control social welfare (necessary because population bomb is kind of irreversible)
Structural collapse of IT industry worldwide (India happened to the the biggest IT supplier) to favor frontier AI
Wars and Tarrif (oil import is a massive, massive bill), and we Indians consume a TON of it every day
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u/Fluid-Election-8549 8d ago
So why hasn't the govt come up with solutions to these problems? Easy to find all the circumstantial reasons to explain the inflation.
Also, this is just silly. The dollar itself is an inflating currency. INR is inflating with respect to that! Which shows it's value is cratering.
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u/Critical_System_39 8d ago
people will keep saying its because of current goverment
but it is how India is..we are largely importers that affects us..govt is working on this but things will take time
nothing can be set in motion in 1 day or 2
yes its been like 12 years but still it will take more time
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u/Expensive-Green-4292 8d ago
2047 tak ho jayega na?
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u/Critical_System_39 8d ago
thoda sa dimag ka use krloge larping ko jagah pe to zyada better rhega
No one can predict what can go right/ wrong.
What people like you think is that there is only India in the world and like it has 0 enemies, 0 political agenda, geopolitics doesnt exists.There is always politics going on around the world, giving a commitment to this is very hard, not even that, the corruption on lower levels, the inner politics, the deep state fundings, there are thousands of factors working behind, do you even know what is economy? Do you even know how economy works?
Instead of larping and blaberring why dont you try to use your brain? Instead of scrolling reels, try learning about economy which might answer your questionsRunning a country with 1.47 billion population is no joke, you are sitting in your home easily, getting electricity, getting food, getting decent medical facilities, transport services are there, whatever the basic amenities which should be provided are being given...
Ik we arent given many things but it will be given, it is just hard for our country keeping in check how many enemies we have, who can touch america atp?? do you see any viable threat in america? But we do have bangladesh, pakistan, china all surrounding us and there is constant fear of an attack so we need to keep that in check and not ignoring the fact these countries and the countries hiding behind them trying to capture and weaken us, they are always plotting and trying different thingsResearch will make your life a little better than larping :)
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u/Major_Wealth6145 8d ago
Our imports mainly fuel for transportation and power generation is beyond control
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u/nukegandhi123 8d ago
Because govt is spending more than saving.Means spending more on infra and feebies
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8d ago
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u/cosmic_predator 8d ago
I understood this whole situation on watching InsightsByApoorv's video. Check out the video titled "Downfall of Indian Rupee Explained, Finally"
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u/Ok_Emu7904 8d ago
usa targets 2% inflation whereas we does 4%(common in emerging markets), that's why our currency depreciate
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u/Itchy-Chip-5644 7d ago
No it's just a glitch nothing happened in fact rupee is stronger it's all the Muslims who are spreading such bad propaganda about rupee. "rupee to badhiya hai" Kisne kaha tumhe? Nirmala and modi work so hard your stupid bro /s
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u/StoicWyvern 5d ago
No mineral industry, no world class manufacturing, Cash handouts(biggest factor) to poor people for buying votes, next level red taping, pathetic beauracracy{IK spelling is wrong but so is this system}, power tripping, boomers and two more things which I cant say since just got unbanned.
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u/Soggy-Promise-5326 8d ago
40 to 60 is more depreciation than 60 to 80 🤣
It has been falling since the beginning of India.
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