What happens,if Rupee equals to Dollar (1 ₹ = 1 $ )

Rupee equals to Dollar is  the dream of 127 Cr Indians,let think if it is come true in an over night or in a short time period, let see what happens if rupee equals to dollar.

The race between the rupee and dollar:

The following graph shows the race between Dollar to Rupee from the 1990 to 2016.Here we are noticed that the dollar always growing expect at one point at 2010's in the 2007 to 2008 the indian currency strong at around's 40 Rupees.

Before reading the story we are all known one thing.The higher value of the  currency doesn't mean the economy of the country is stronger.

If that was the correct the Bangladesh would have stronger economy than the japan because 1 BDT = 1.4 YEN but not, because the economy doesn't depends on value of the currency.

What,if 1 Rupee= 1 Dollar:

Lets see what happens if indian Rupee equals to Dollar, if the Rupee  equals to Dollar there are so many benefits along with losses also let's discuses about it.

Benefits: 

1. Buying goods cheaper from the international markets because, the imports are very cheaper which is good for the developing country.

2.Buying luxurious goods will be cheaper for the Indians. lets example the iPhone 6 will be available at 650/- for the Indians. 

3. Petrol prices will be cheaper,it will resulting the transportation cost will be cheap around the country. 

Loses:

1. The exports will be expensive because Indian products will be expensive when compared with other country products. If it is expensive why any country buy goods from India.

2.No foreign investment. The no.1 reason for the foreign companies invest in India is low labor charges(If the rupee=Dollar then the companies pay min 10,000$ for every employer). It resulting the complete economy slow down.

3.IT and Service sectors are playing major roles in the Indian GDP it is almost 60%  and not only that  it 27 %  employment.

4.If Rupee=Dollar why any company pays lakh's of salary to their employee per month and they can hire other country peoples to do same work for 300$ PM. So the peoples will loss their jobs which will increases the unemployment.

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Is it possible?

What if use only Swadeshi Products?

The Indians are think it is possible by boycott other country products to use.That will not work, if Indians  boycott other country products they also boycott Indian  products it will reduce the exports because the we reducing the imports.

The Financial Minister and RBI Governor is not worry about the falling Rupee value they worry about fluctuation in the market. (that means the Rupee value suddenly fallen 10 Rupees Down and day after it will gain 5 Rupees up).

Conclusion:

Rupee=Dollar is not good for growing and developing countries.The growing production and economic activities will eventually get us it. I early mentioned that the currency value of the country is not determines the strength of economy.

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