Indian Currency Market

Indian Currency Market

Critical examination of Indian Currency Market & its Future

by

Abhishek Gupta (4713) Modak Sarda (4719) Nitesh Goyal (4735) Rachit Makker (4716)

Under the guidance of

Mr. Kumar Bijoy

Shaheed Sukhdev College Of Business Studies New Delhi - 110092 25 August, 2009

Critical Examination of Indian Currency Market & its Future

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Executive Summary
The Economy of India is the twelfth largest economy in the world by market exchange rates and the fourth largest by purchasing power parity (PPP) basis. India's large service industry accounts for 54% of the country's GDP while the industrial and agricultural sector contribute 29% and 17% respectively.Economic development in India depends on the various sectors that constitute the Indian economy – these are primarily the agriculture, services and manufacturing industries. Post 1991, Globalization in India has allowed companies to increase their base of operations, expand their workforce with minimal investments, and provide new services to a broad range of consumers. India uses Wholesale Price Index (WPI) to calculate its inflation. In 2009, India saw negative inflation for the first time since 1977-78. Therefore, the Union Budget 2009 aims towards an Inclusive Development. Its main objective is to provide basic amenities and opportunities for livelihood to vulnerable sections. Planning is very important for the smooth functioning of the economy. In India, The Planning Commission is entrusted with the responsibility of the creation, development and execution of the Five Year Plans. Given the rapid growth of the Indian economy, it can assume a significant role in growth of Indian Currency markets. With fast increasing global presence, India is emerging as top destination for Foreign Direct Investments (FDI). India has strengths in information technology, auto components, chemicals, apparels, pharmaceuticals, textile and diamond cutting. Despite a surge in foreign investments, rigid FDI policies...