Fri. Mar 29th, 2024

According to IMF spokesperson Gerry Rice, the Indian rupee “has lost about 11 percent of its value in nominal terms vis a vis the US dollar”. As a result of the depreciating value of Indian currency since December 2017, we have estimated the value between five to six percent Gerry added.

He warned the economy against the high price rise of imported goods like petroleum, oil, etc.. And problems like inflation. Not just India but currencies of many of India’s trading partners, including those in the emerging markets, too, have depreciated against the dollar said, Gerry.

The Indian economy has seen a drastic fluctuation like GST, demonetization, and depreciation in currency in the last few years which has lower the growth and development rate.

On talking of demonetization and GST Gerry said  “Growth has been gradually accelerating in recent quarters, with strength in both consumption and investment, which have helped the economy,”

“The demonetization did hinder the money supply, creating cash shortages, which also somewhat dampened consumer and business sentiment,” he said, adding, it resulted in a relative slowdown in growth.

“On the other hand, its positive effects, I think, included enhanced digitalization and higher formalization of the economy, which would help raise, amongst other things, the revenue and tax compliance,” he said.

According to the IMF spokesperson, there are already some signs of its positive effects.

“The growth in the number of new taxpayers, as documented by the Ministry of Finance, has been substantial in recent years,” he said, adding it is being monitored on an ongoing basis

Leave a Reply

Your email address will not be published. Required fields are marked *