A weaker rupee doesn’t guarantee export boost
Theory and past experience suggest we can’t count on a weaker currency for an export boost until the global economy recovers
For more than a month now, one US dollar has been exchanged for more than 80 Indian rupees. The value of the rupee has more than halved since early 2008. Would rupee depreciation help raise exports and provide a cushion for India’s economic growth during the global slowdown that is upon us?