India is all set to celebrate 75 years of Independence on 15 August 2022. Ever since the country broke free from the clutches of the British Raj, Indian currency – the rupee – has been depreciating. From once 13 rupees being enough to purchase a pound sterling, or 4 US dollars, the Indian currency has depreciated to now to almost Rs 80 to 1 US dollar. Weakness for the rupee in the last 75 years has been contributed by many factors with trade deficit rising to record highs of $31 billion from almost no deficit at the start of independence, mainly contributed by the high oil import bill. Since independence, the rupee has depreciated almost 20 times.
How Rupee has performed in the last 75 years
The 1966 devlauation
Until 1966, the Indian currency was pegged to the British pound, meaning that before the US dollar was taken as the standard global currency, the rupee used to be measured in terms of pounds rather than the US…