Can the rupee become a hard currency?
By 2030, when India could be a $10 trillion, middle income economy, the foundations laid today may well allow the rupee to gradually evolve into a hard currency
Writing about the prospect of the Indian rupee becoming a hard currency in the week after it depreciated against the dollar and in a year when foreign portfolio investors have pulled money out of India’s bond market might appear misplaced. Nevertheless, the rupee may be in a better position over the long haul to achieve hard currency status than the yuan. China’s top-down approach towards achieving hard currency status for the yuan has entailed mimicking the characteristics of a hard currency. On the other hand, the Indian government’s steps toward creating a formal, tax-compliant economy—although not directed at attaining hard-currency status—have laid the foundations for the rupee to evolve as an international currency.