The Problem of the Rupee: Its Origin and Its Solution

The Problem of the Rupee refers to the challenges faced by India regarding its currency, particularly issues of inflation, depreciation, and trade imbalance. Originating in the post-colonial period, these problems arose from insufficient foreign exchange reserves and high import dependence. The solution involves sound economic policies, such as improving export competitiveness, stabilizing prices, and managing foreign reserves. Strengthening the rupee through these measures can lead to greater economic stability, improved trade balance, and increased investor confidence, ultimately benefiting the country's overall economy.