The conversation between human and AI assistant.
How does the change in Indian currency affect Indian economy?
Could you explain how a depreciating currency can boost exports for India?
When the value of the Indian Rupee depreciates, it makes exports cheaper and more competitive in the international market. This increases demand for Indian goods, which then boosts export revenues. This effect is particularly strong in industries such as textiles, automotive, and pharmaceuticals, which are labour and capital-intensive industries where India has a comparative advantage.