The Indian rupee has been continuously weakening for some time. Its price against the dollar has reached its lowest level ever. The strength or weakness of the rupee is always determined by its value against the dollar. If the value of one dollar is lower, the rupee is considered strong, and if the value of one dollar is higher, the rupee is considered weak. Recently, the dollar price reached around Rs 89, which means the rupee has weakened. In this context, people are asking: why is the rupee falling so much, has this fall happened before, and did the rupee weaken more during the Modi government or the Manmohan Singh government? Let us know how much the rupee weakened during the Modi government and whether it is more or less than during the time of Manmohan Singh.
How much did the rupee weaken during the Modi government?
At the beginning of the Modi government in 2014, the value of one dollar was Rs 58.58. Now, the dollar is around Rs 89, which means the rupee has weakened by more than 52 per cent during the Modi government. Even in the last one year, the rupee has shown considerable weakness against the dollar. In September 2023, the value of one dollar was Rs 83.51, while in September 2024 it increased to Rs 88.74, which means the value of the rupee has fallen by more than 6 percent in just one year.
Is it more or less than Manmohan Singh’s time?
When Manmohan Singh took office in 2004, the dollar was worth Rs 45.45. By the end of his tenure in 2014, the dollar had reached Rs 58.58, which means the rupee weakened by about 29 percent in 10 years. In comparison, the rupee has depreciated much faster during the Modi government. At the beginning of Modi government in 2014, the dollar was priced at Rs 58.58, which has now increased to around Rs 89. This means that the rupee has weakened by more than 52 percent in the last ten years. This comparison shows that the rupee has depreciated almost twice as fast under the Modi government as compared to the Manmohan Singh government, hence, the responsibility for the rupee’s weakness lies more with the current government.
India’s debt
India’s external debt has increased. It was $440.6 billion in 2014, which will increase to $613 billion in 2023. However, the Modi government has significantly strengthened India’s foreign exchange reserves. These reserves stood at $304.2 billion in 2014 and are expected to grow to $595.98 billion in 2023, almost doubling. Apart from this, the ease of doing business has also improved. Under the Manmohan Singh government, India’s ranking was between 132 and 134, while under the Modi government, it improved to 63. This means that starting and running a business is now easier than ever.