What happen if 1 rupee becomes equal to 1 dollar? | The Encyclopedia | Lucky Ali Saifi

What if 1 rupee becomes equal to 1 dollar? 

What happened to India when it happened once in history?

First and foremost, $ 1 is equal to ₹ one or ₹ 1 is equal to $ 1 does not indicate that its economic system is robust. On the day that became equal to ₹ 1 = $ 1, India's profits will be meager, but the loss will not withstand. Economists tell that if this happens even for only one day, then the loss may have suffered for many years.

Before knowing the details, I would like to give you the example of Japan. In 1986, Japan'sJapan'sJapan's currency became very strong, which they suffered in 2018. In 1986, the US dollar fell from 280 yen overnight to 140 yen. And with such a significant change, there was such a big shock on Japan's economy, whose loss is still being tolerated by this country.

Why is the rupee weak or strong?

The price of the rupee depends entirely on its demand and supply. It also affects imports and export.

1 rupee equals 1 dollar

The day one rupee becomes one dollar; electronic goods, software, all the goods that India buys from other countries will become very cheap because India will not have to pay 70 times to purchase such services.

We can also buy branded things such as the iPhone, which is sold at the highest prices in our country, we will be able to buy only 600 rupees. Because in the US, it costs 600 dollars, and if 1 rupee = 1 dollar, then we will be able to get iPhone for only 600 rupees.

What will be the loss if 1 Rupee = 1 Dollar?
Population and hunger will increase.

The day $ 1 became equals to one rupee. On the same day, foreign investment abroad, the Indian workers will leave work and return to India, seeing that India's population and unemployment will increase. The citizens of many more countries will move to India 4 times the population. I will go from * 4 * to 8 *. There will be money, but there will be no land to live and food to eat.

If 1 rupee = 1 US dollar, then those things we sell to the country will prove expensive. So why would any foreign country purchase products for more money than other countries? They would like to purchase those things from another country to be available in other countries at lower prices. For this reason, exporting in our country will stop.

Will go on unemployment.

All the call centers IT companies are running in the USA, UK, and Canada because they operate at low prices from India. More than 70% of IT companies in India have call centers in their name. The extent to which unemployment will increase and the money coming from abroad through IT services will stop completely. More importantly, Pakistan will manage all this work.

Reduction in tourism: -

If the value of the dollar increases, then the tourists will also stop coming. Because earlier they used to find India cheap but now it will start to be expensive.

Foreign investment:

Foreign investment is mostly made in Indias' IT sector. IT sector contributes a total of 60% of our country's GDP. 27% of our country's population also gets employment from this sector, which will entirely stop because foreign countries will stop investing in our country.

TAXES will decrease

Tax is going to be affected. If there is no production, then there will be no tax, due to which the government will not have any money.

That's why the Reserve Bank of India has made certain assumptions. Neither the rupee is allowed to fall nor increase because India can also suffer losses in these subjects.

By the way, the RBI is not so much worried about the dollar and rupees, and it is justified to be below it. By the way, too much fluctuation is not suitable for any economy.