A new low has hit the value of Indian rupee whereas the economy of the country is witnessing the fastest quarterly boom this year. Despite the fall in the currency price, the whopping growth of the economy level is quite impressive.
The GDP expanded so far by 8.2% within three months till June. Last year, the growth was 5.5% at the same time. The increase in the rate of GDP growth has fortified the fact that India is on the top list of fastest growing economies in the world. The first quarter of this year ranging from January to March has witnessed a growth of 7.7%. The boost was primarily supported by the consumer goods manufacturing and strong spending during these 6 months. It amounted to around $2.6 trillion or £2 Trillion.
On the same note, The Indian Rupee is witnessing a huge downfall. The price of Indian Rupee is seeing its worst condition against dollars in the last three years. The currency is dropping its value by a whopping percentage of 3.6% in the month of August. It is steeper than the worst decline occurred in August 2015. For five months, the price of Indian Rupee is continuously falling.
Since the beginning of 2018, the India Rupee has lost 10% of its value as the investors from other countries sold currency due to trade deficit. The GDP trend is likely to be at its best due to the investment done by public, mostly rural, and higher consumption rate. The oil prices are surging and the interest rates on current accounts are also higher. These might be the reason behind such the downfall of Indian Rupee value.