India’s Economy Is Primed to Launch

India’s Economy Is Primed to Launch


The Current Balance Between the Dollar and Indian Rupee

In recent years, India has continued to be one of the most powerful players in world trade. Beyond this, the Indian economy has continued to expand and blossom. One of the primary measures of the health of an economy, and the predictable growth thereof, is to look at the strength and value of the relevant currency. India’s currency is the Indian rupee, whose symbol is INR.

In isolation, the value of a currency means relatively little. Whether something costs one hundred or one thousand units of currency is only relevant when you compare it to the income of the people and the relative buying power that the currency enjoys compared to other nations. Generally, the most common yardstick for comparing the value of currencies is the United States dollar, or USD. As it sits, one US dollar is worth approximately seventy Indian rupees, which represents a small slump over the course of the past several years. However, when assessing the dollar vs rupee, there are many more factors to consider than just the current exchange rate.

What’s the likely future direction?

Most analysts believe that the future of the Indian Rupee will be very strong. While there has been a recent, albeit minor, slump in the valuation of the rupee, this is most likely due to a global depression of currency. Thus, in comparison, the delta is fairly insignificant. There are a few major factors that will benefit the Indian economy, and the value of the rupee, in the coming months and years.

Their Economy is Growing Overall

One of the biggest factors contributing to the likely strengthing of the INR is the continued expansion of the Indian economy. This growth is due to a couple of primary factors. First, the population of India is expanding which inherently grows its economy and workforce. Second, the technological power of India in regard to both manufacturing and development is increasing rapidly. Soon, Indian will not only be viewed as a powerful economy but a powerful source of innovation and manufacturing.

They Will be Beneficial Bystanders to the US Trade War with China

For decades, China has been the driving economic force outside of the United States. Its unparalleled manufacturing power and export capacity has led to continued growth in the Chinese economy and currency. However, political motivations are currently causing a souring of the relationship between the United States, a primary importer, and China, a primary exporter. This has caused prices from China to increase and lowered its power in the market. This evolution is an extremely powerful turning point for India. By remaining neutral in the political pressures of this trade war, the Indian export market has become comparatively more affordable and lucrative.

Not only is the quantity of exports from India going to continue to increase and broaden its economy, so too will the type of exports they offer. Let’s look at the largest exports of India, and the impacts they will have:

India’s Largest Exports


Diamonds are the largest export from India, accounting for 9.3 billion USD annually. The primary application of diamonds is often thought to be jewelry and other luxury goods, but diamonds also have countless industrial applications. By cornering this market, India’s economic strength will benefit enormously.

Refined Petroleum

Refined petroleum is the second-largest export from India, but may prove to be the most important. Unlike crude oil, the market price of refined petroleum is comparatively stable. This stability is largely due to the refining process being a single-company operation, as compared to the myriad of companies that are required for crude oil extraction. This leads to higher overall profit potential and avoids the pitfalls of relying too heavily on collaborative influences.


Rice is another massive and tactical export from India. Rice is a crucial part of the diets of many countries. Most notably, China is a prodigious importer of rice from India. As previously mentioned, the export market for China has been comparatively crippled recently. By being able to control the export price of a staple aspect of the Chinese diet, Indian places itself in a fantastic position.


Aluminum’s importance is increasing rapidly and is crucial to the automotive industry and several other manufacturing processes. By cementing itself as a major exporter of aluminum, the trade power of India and the strength of the rupee is an almost certain bet.

Raw Sugar

Finally, sugar is the fifth largest export of India. It should be noted that this refers to cane sugar, not to the beet-derived sugar that is more common in manufactured goods. As the overall market becomes more health-conscious, the demand for this purer and more natural sugar will only go up.

In summary, India has done an admirable job positioning themselves in the market. Between technological innovation, manufacturing prowess, a growing workforce, and an ingenious export market, India’s economy has nowhere to go but up.

Published by Valentine Belonwu

My name is Valentine, founder of this site, an entrepreneur working as a moderator at Bizsugar a small business community news site. Connect with me on Google+ at Valetine Belonwu


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