A REPORT

ON

A STUDY ON THE IMPACT OF CURRENCY MARKET

ON INDIAN ECONOMY

By

Mukesh Rao Rajuba

18BSP3105

JMarathon Advisory Services Pvt. Ltd.

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 REPORT

ON

A STUDY ON THE IMPACT OF CURRENCY MARKET ON

INDIAN ECONOMY

By

Mukesh Rao Rajuba

18BSP3105

A report submitted in partial fulfilment of the requirements of

PGPM Program of IBS Pune

Distribution list

Company guide Faculty Guide

Mr. V Sai Sriram Viswanadha Prof. Anupama Tadmarla

Portfolio Manager Faculty IBS Pune

Date of Submission:

Declaration
Page | 2
This is to certify that the project entitled “A STUDY ON THE IMPACT OF CURRENCY
MARKET ON INDIAN ECONOMY " IN INDIA with reference to “KARVY STOCK
BROKING LTD”, submitted by me in partial fulfilment for the requirement of PGPM (Post
Graduate Program in Management) at IBS PUNE, is genuine and bonafide work done by me
under the supervision and guidance of Mr. Sai Sriram Viswanadha (Company Guide) and
Prof. Anupama Tadmarla (Faculty Guide) and it is not previously submitted by me for the
award of degree or diploma in any other institute or university.

Date:

Place: Candidate

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Acknowledgement

This journey of three months has been a great one. This of course would not have been
possible without the support and guidance of certain people. First, I would like to thank my
Company Guide, Mr. Sai Sriram Viswanadha(Branch Manager), for always being there
for me whenever I was stuck somewhere during the work; his valuable insights have always
helped me out during my sip period. The other notables mention would be of my College
Guide, Prof. Anupama Tadmarla (Faculty Guide) for extending her cooperation in doing
this project. I also thank all the employees in JMarathon Advisory Services Pvt.Ltd. for
their cooperation and valuable opinions in successful completion of my project.

MUKESH RAO RAJUBA

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 INDEX

S.no Contents Page No

1 Abstract 7

2 Introduction 8

3 Company Profile 13

4 Objectives of the study 15

5 Methodology 15

6 Data collection and Analysis procedure 15

7 Problem Statement 16

8 Analysis of Objectives 17

9 Objective 1 18

10 Objective 2 43

11 Objective 3 47

12 Limitations 49

13 Findings 50

14 Conclusions 51

15 Suggestions 52

16 References 53

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 Index of Tables

Tables Page no
Table :1 10,11
Table: 2.1(a) 20
Table: 2.1(b) 22
Table: 2.2 25
Table: 2.3 27
Table: 2.4 29
Table: 2.5 31
Table: 2.6 33
Table: 2.7(a) 35
Table: 2.7(b) 37
Table: 2.8 39
Table: 2.9 41
Table: 3.1 47

List of Figures

Figures Page no
Figure: 1(a) 11
Figure: 1(b) 12
Figure: 2.1(a) 21
Figure: 2.1(b) 23
Figure: 2.2 26
Figure: 2.3 28
Figure: 2.4 29
Figure: 2.5 32
Figure: 2.6 34
Figure: 2.7(a) 36
Figure: 2.7(b) 38
Figure: 2.8 40
Figure: 2.9 42

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Abstract

The current study is all about the summer internship project with JMarathon Advisory
Services Pvt. Ltd. This report consists of the work which has been performed during the 14
weeks of the SIP which includes the training and live trading experience in the Indian and
Forex market. This study is all about how to generate business for the company and to serve
the clients without making any losses and to generate profits by trading in the Forex market.

This report also includes the strategies applied for generating the two portfolios of
INR15000 each and getting the subscribers for the E-learning courses which are offered by
the company and by now two portfolios has been generated and two subscriptions has been
made.

The study also analyses the reasons for the depreciation in Indian Rupee against
dollar and the recent strategies and plans made by the Central Bank (RBI) and Government of
India to stabilize the depreciating currency value and also to strengthen the rupee against
USD

This study consists of the data collected from various sources about the
depreciation in the currency values and the factors which are affecting the currency value and
the Indian economy. The report consists of the depreciation of the currency value from
INR4.65=USD1 to INR72.9=USD1 and the reasons behind this depreciating currency value.

The study also consists of the guidelines and strategies which has been discussed
by the RBI and Central Government In the further stages of the project the data collected will
be analysed using the various statistical tools such as Mean, Standard Deviation, Covariance.

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 Executive Summary Report
I Mukesh Rao Rajuba (18BSP3105) of ICFAI Business School Pune have completed 14
weeks (19 February 2019 to 24 May 2019) of Summer Internship program at J Marathon
Advisory services Pvt Ltd in Hyderabad. So hereby submitting executive summary report.

Organisation details
J Marathon is a financial advisory company in India established in the year 2012. They
provide advises on financial planning and Strategic Investment. J Marathon was well
equipped with highly trained and qualified professionals who provide unbiased advises to
their customers. They also offer technology-based services to their customers who can
effectively monitor their portfolio and take decisions and the current Board of director for the
company is Mr. Gopal Krishna.
The company is not registered with any of two major stock exchanges i.e. Bombay Stock
Exchange (BSE) and National Stock Exchange (NSE).
Products offered by J Marathon Advisory Services Pvt Ltd are
 Portfolio Management
 Demat Accounts
 Commodity Trading
 Forex market
 Systematic Financial Planning

Project Details
My project at J Marathon Advisory Services Pvt Ltd is to know the “Impact of Currency
Market on Indian Economy”. The main objective is to study the impact of currency market on
Indian Economy and the reasons for depreciation of the Indian rupee.

Objectives of the study:

1. To study the causes for decline of the rupee against dollar.

2. To study different stringent measures taken by Central Bank & government to make
rupee stronger.
3. To get 2 portfolios for the company and 30 subscribers for the online course which
the company is providing.

Methodology:

 In this research/ study I’ll be using the Data collection method i.e. secondary data
collection method and historical data about the currency values and fluctuations in the
exchange rates.
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Findings

 From the study, it has been found that the USD is effecting the value of INR but also
the Indian Economy as most of the FDIs, borrowings are in the form of USD.
 USD is not only effecting the Indian Economy or the Indian Currency but also the
different economies and currencies all over the world EURO, Yen and others.
 It has been found from the study that the majorly effecting economic factors to the
Indian economy are crisis in BOP, large investments in FDIs, external debts,
depreciation in INR and capital inflows in the form of USD.
 It also been found from the study that the Euro market has 56.7% of the US market.
So any negative trends in the Euro market will have the positive trend in the US
market.
 It has been observed from the study that the depreciation in the value of Indian
currency value has been accelerated from 1991-92 i.e. after the liberalization period.
 It is been found that the India followed the fixed FX rate policy in which the RBI
fixes the rate of different major currencies of the world like USD, GBP, EURO but
later started following the floating rate policy where the market fixes the FX rate.
 It has also been found that the Fed rates were all time low from 2008 to 2015 i.e. 6%
and then it again raised but still more than the Euro market which is appreciating the
USD.
 It has been observed from the study that the interest rates of RBI were constant for 8
years i.e. from 2004-11 which 6%.
 The findings from the study is that the FDI are almost increased by 20 times.
 Import of oil is constantly increasing but never decreasing from 2001 to 2013 except
in one year i.e. 2010 and te quantity increased from 14000 barrels in 2001-02 to
169319.3 barrels by 2012-13.
 The policy of external borrowings started after the implementation of 5 year plans
which created negative impact on the Indian economy.
 The external borrowings were suddenly increased at a very shocking amount of
360935Million in 2010-11 from 290.28Million in 2001-10 i.e. it increased nearly 100
times.

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Conclusion

As of now the data required for the project has been collected and the methodology for
analysing the data has been decided and also the recent strategies decided by the government
for maintaining the stability and strengthening the currency against dollar has also been taken
into consideration (i.e. Objective 2). From the internship by working with the start-up
company has been very helpful as we got many opportunities to learn new things and face
any new issues. After getting two portfolios and 3 subscribers for the company we learned
how to generate business for the company. After the training of 15 days we got an overview
on the Indian and Forex market and how to trade in the market. We even traded in the Forex
market and also had the experience of trading in the Indian stock market and learned how to
not make any losses by trading in the stock market.

The study includes the economic factors which are affecting the Indian
economy at a very massive rate and creating a negative impact on the Indian currency value
as well. The study also included the data of various economic factors which are effecting the
economy for 10-20 years. The analysis of this data is also done and it has been proved that
the currency market is creating the negative impact on the Indian economy and the value of
the INR in negative way.

The study also proves that the negative impact in European market will
create a positive impact on the USD market. The USD effects the other world currencies as
well and not only India. The study also concludes that the appreciation in the USD will
depreciate the different world currencies.

So the conclusion of the study is that the depreciation in the value of

INR against USD is creating a massive impact on the Indian economy and the policies and
strategies made by the Central Bank and Central Government will help the Indian economy to
create stability and also strengthen the economy and the value of the INR as well.

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Introduction

Rupee-Dollar fluctuations is one of the biggest and oldest problem India is facing along with
it’s impact on the Indian economy. The Indian economy which was slightly balanced before
the year 1991 suddenly turned into more negative prospects due to various negative economic
factors which are also getting effected by the depreciated currency value like external
borrowings, FDIs etc. The value of the Indian Rupee and at the same time Indian economy is
going on decreasing since decades. This is due to various economic and political factors and
many internal and external policies and improper planning by the government. The value of
the Rupee was around Rs.4.65=US$1 in 1947 and this value increased to Rs7.5=US$1 in
1966, the value of the rupee again depreciated to around Rs.25.92 in 1991. This depreciation
further continued and is almost doubled(Rs.48) due to the Lehman Brothers affect, 2008 and
it further depreciated to Rs.61 by 2013 due to some other internal factors and this devaluation
continues to grow and the rupee value touched the lowest mark of all time i.e.; Rs.72.9 by the
end of 2018.

Depreciation refers to the devaluation in the value of the domestic currency

against foreign currency. That is paying more amount of domestic currency to the same value
of the foreign value. This depreciation in rupee may cause due to various factors like imports
and exports, imbalance in the balance of payments, inflation, change in the interest rates,
merchandise import, freight, etc. This all factors whether directly or indirectly affecting the
Indian Economy and the GDP of the country is also getting affected due to this factor. Trade
deficit also affects the currency value. The current exports of India is around 9% less than
imports which in turn affecting the rupee value against various currencies.

The foreign trade in India has also been increased since last 2 decades which in
turn led to India’s GDP reaching to Rs.167.73 Trillion(US$2.3Trillion) in 2017-18. GDP in
first half of 2018-19 stood at Rs.89.88Trillion (US$1.29Trillion). The total exports of the
country increased to 15.48% that is US$351.99Billion while imports increased to 16.86%
which shows that there isn’t a proper Balance of Payment which is also leading to devalue in
the currency value.

Along with the foreign trade which is effecting the currency value, inflation is
also one of the most affecting factor in the devaluation of the currency value. The Indian
rupee is going on depreciating since decades as the inflation is one main cause for
appreciation or depreciation in the value of the currency.

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 The inflation rate of India in 1998 was around 8% and the current inflation rate in
India is 3.31%.
In others terms, depreciation may also takes place due to high demand of foreign
currency and less supply in the domestic country which indirectly leads to the devaluation in
the domestic currency. There are so many other factors which are also affecting the currency
value and the Indian economy as well.

The value of the rupee was stable at the time of independence and after 1951
i.e.; after the implementation of 5 year plans India started external funding or borrowings
from foreign countries. Since than the rupee value started depreciating and it is still going on
decreasing and it touched down the lowest ever mark by the end 2018 i.e.,INR4.65=USD1in
1947 to INR72.9=USD1 by 2018. So by looking at the current scenarios “the worse is yet to
come” according to the researchers.

The Indian economy is also getting effected at a very large perspective due to
the effect of various economic factors which are also getting affected due to the depreciating
value of the currency like depreciating the value currency value leads to paying more amount
of domestic value then the value at the beginning as investments are borrowings were in the
form of US Dollar.

So to control this huge fluctuations and the continuous devaluations in the

rupee value against dollar and to power the Indian economy the Central Bank and the
government of India is taking various steps and making various strategies to control this
fluctuations and to bring stability in the currency value and to strengthen the value of Indian
currency against dollar and the Indian economy as well.

The value of the currency took up the pace after the liberalisation period that is
after 1990 and the depreciation occurred at a very fast rate. The data of the devaluing value of
Indian Rupee has been presented below.

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Table 1: Devaluation of Rupee table before and after Liberalization

Pre- Liberalization Post-Liberalization from

from 1969-70 to 1990-91 1991-1992 to 2012-2013
Year US Dollar Year US Dollar
1969-70 7.57 1991-92 25.92
1970-71 7.52 1992-93 31.44
1971-72 7.56 1993-94 31.37
1972-73 7.67 1994-95 32.42
1973-74 8.04 1995-96 35.43
1974-75 8.41 1996-97 36.32
1975-76 9.00 1997-98 41.27
1976-77 8.76 1998-99 43.06
1977-78 8.21 1999-00 44.94
1978-79 8.15 2000-01 47.19
1979-80 7.88 2001-02 48.60
1980-81 8.69 2002-03 46.58

1981-82 9.49 2003-04 45.32

1982-83 10.14 2004-05 44.10

1983-84 11.37 2005-06 45.31

1984-85 12.36 2006-07 41.35

1985-86 12.61 2007-08 43.50

1986-87 12.96 2008-09 48.40

1987-88 13.91 2009-10 45.73

1988-89 16.22 2010-11 46.67

1989-90 17.50 2011-12 53.44

1990-91 22.69 2012-13 58.60

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 Mean 10.76 Mean 42.59

SD 3.95 SD 7.74

CV 0.37 CV 0.18

Table: 1

Chart of INR value before and after the Liberalization

Fig 1: INR values before the Liberalization

INR value
25
22.69

20
17.5
16.22

15 13.91
12.96
12.3612.61
11.37
10.14
9 9.49
10 8.76
8.41 8.21 8.15 7.88 8.69
7.57 7.52 7.56 7.67 8.04

US Dollar

Fig: 1(a)

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 Fig2: INR values after the Liberalization

INR Value
70

60 58.6

53.44

50 48.6 48.4
47.19
44.94
46.58
45.32 45.31 45.7346.67
43.06 44.1 43.5
41.27 41.35
40
35.4336.32
31.4431.3732.42
30
25.92

20

10

US Dollar

Fig: 1(b)

So the above charts and the table shows the value INR before and after the Liberalization
period. This shows that the depreciation in the currency value of India accelerated since after
the liberalization period at very high rate. The value of India rupee which was Rs.22.69 by
1990-91 devaluated to Rs.58.6 by 2012-13.

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 Company profile

About J Marathon
JMarathon is a financial advisory company in India established in the year 2012. They
provide advises on financial planning and Strategic Investment. JMarathon was well
equipped with highly trained and qualified professionals who provide unbiased
advises to their customers. They also offer technology-based services to their
customers who can effectively monitor their portfolio and take decisions.

Mission

To develop meaningful & life long relationship with the clients by providing them the
highest quality service &address every aspect of their financial related issues.

Vision

To be the most trusted &respected professional service firm recognised by their

clients delivering excellent service, which is value for money &more than their
expectations.

Values

 Integrity
 Pursuit of excellence
 Accountability
 Collaboration & passion.

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Swot analysis of JMarathon Advisory

 Strengths
 Emphasis on efficient execution of trades with efficient portfolio handlers
 Proper financial services and advisory services in wealth management and
financial planning
 Have its office in Hyderabad, Chennai and Bengaluru which are the major
cities in the south
 Better equity operations

 Weakness
 Low penetration in other cities of north India
 No advertising which causes low awareness among the investors

 Opportunities
 Growing Rural market
 Can expand its business to North part of India
 Attracting the youth towards investments

 Threats
 Tough competition from reputed firms like Karvy stock broking, Motital
Oswal and Zerodha
 Strict economic reforms

Tasks

 Generated two portfolios and opened live account from the new customers.
 Training on major strategies of risk management with respect to live accounts.
 Analysing the 1000 stocks to analyse the secondary data to know trends in the market.

Objectives of the SIP

 To study the volatility in Forex market and strategies of risk management.

 Forming new strategies from learning’s and findings for financial market analysis.

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Objectives of the study:

4. To study the causes for decline of the rupee against dollar.

5. To study different stringent measures taken by Central Bank & government to make
rupee stronger.
6. To get 2 portfolios for the company and 30 subscribers for the online course which
the company is providing.

Methodology:

 In this research/ study I’ll be using the Data collection method i.e. secondary data
collection method and historical data about the currency values and fluctuations in the
exchange rates.

Data collection and analysing procedure:

 The data collection procedure would be secondary data collection process i.e. from
the websites, past studies of different researches, books and some other means.
 The collected data will then be analysed using various statistic tools such as
 Mean
 Standard Deviation
 Compound Annual Growth Rate

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Problem Statement

So if we look at the economy and the currency value of India, we see that there’s been a very
negative impact due to the currency market since decades and the problem still continuing at
a high rate but not in the low rate.
The value of the currency has devaluated at a very shocking rate against
the US Dollar. The value of the Rupee started declining from 1991 due to a serious crisis in
the Balance of Payments and also due to the heavy FDIs coming to India and the same effect
has also been fallen on the Indian economy cause the declining in the value of the domestic
currency leads to paying more amount of the domestic currency that paid at the beginning
either in the form of dividends, repayments, interests etc.
The devaluating currency value shown massive impact on the economy
of India as well. India followed the system of fixed rate model where the Central bank fixes
the FX rate against the major currencies of world like the USD, GBP, Euro etc. and after that
India adopted floating FX rate system where the market decided the rates. If the demand is
less than the supply the value declines, as it is happening in case of INR against USD, as
there is huge inflow of USD in the form of foreign capital.
If we look towards the current scenarios of Indian economy, we can see
that there is a negative BOP, inefficient market conditions, FDIs etc. all this factors are
treated as the economic factors and are the disadvantages for the Indian economy and
currency at the same time.
So this study deals with the analysis of various factors of Indian economy
which getting affected due to this Currency market and the USD.

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ANALYSIS OF THE STUDY

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 OBJECTIVE-1
To study the causes for decline of the rupee against dollar.

Page | 21
Impact of Currency Market on Indian Economy

1. Dollar gaining strength against other currencies

The main reason behind the appreciation or strengthening of the US Dollar is it’s advantage
of being the Global currency. The US Dollar has it’s impact on many currencies around the
world and among them countries like India, Nigeria, and some of the developing countries
has the major impact on their development. There are three main for the strengthening of the
US Dollar against other currencies which are mentioned below.
Reasons for Strengthening of dollar
Federal Reserve Bank funds/ Fed funds ended the highly cost effective monetary policy as
the improved economy. At the same time fed stopped the adding money to the money supply
which reduced down the availability of UD Dollar in the global market which lead to
strengthen the value of the USD.
Along with them the Fed also attracted the investors by increasing the
interest rates on the investments which again lead to strengthen the USD against the other
currencies if the world. So this was the first reason for the strengthening of the dollar and the
data of the interest rates is given below.

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 Table 2.1(a): Fed rates from 2001-2018

Sr.no. Year Fed fund rates

1 2001 1.54
2 2002 1.16
3 2003 0.94
4 2004 1.97
5 2005 4.09
6 2006 5.17
7 2007 3.06
8 2008 0.14
9 2009 0.05
10 2010 0.13
11 2011 0.04
12 2012 0.09
13 2013 0.07
14 2014 0.06
15 2015 0.2
16 2016 0.55
17 2017 1.33
18 2018 2.4
19 Mean 1.277222
20 SD 1.531388
CV 1.198999
Table: 2.1(a)

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 Fig 2.1(a): Fed Fund Rates from 2001-2018

Fed fund rates

6

5 5.17

4
4.09

3
3.06

2 2.4
1.97
1.54
1 1.33
1.16
0.94
0.14 0.05 0.13 0.04 0.09 0.07 0.06 0.2 0.55
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Fed fund rates

Fig: 2.1(a)
The above graph and table shows the Fed fund rates from 2001-2018. This chart and table
shows that there was very low rates from 2008-2014 and from 2015 the rates were gradually
been increased to 2.4 by the end of 2019 and this has kept appreciating the USD over other
currencies of the world.

The second main reason for the strengthening of the USD is lowering
down the value of the Euro by doing the opposite of US Fed bank i.e.; lowering down the
interest rates and high supply of the Euro in the market which thus leads to appreciation the
value of the USD against other currencies of the world which is because the Euro makes up
57.6% of the value of US Dollar index.

The recent changes that is the lowered down the interest rates to 0%
which again gave an advantage to strengthen the USD. So this indicates that whatever the
reason which will create negative impact on Euro will have positive impact on the USD and
vice versa.

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 Table 2.1(b): EURUSD from 2001-2018

Sr. no. Year 1USD=EUR

1 2001 0.8829
2 2002 1.0487
3 2003 1.2594
4 2004 1.3552
5 2005 1.1846
6 2006 1.32
7 2007 1.4588
8 2008 1.3977
9 2009 1.4322
10 2010 1.3368
11 2011 1.294
12 2012 1.3188
13 2013 1.375
14 2014 1.1283
15 2015 1.0862
16 2016 1.0517
17 2017 1.2005
18 2018 1.1482
19 Mean 1.237722
20 SD 0.156265
21 CV 0.126252
Table: 2.1(b)

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 Figure 2.1(b): EURUSD data from 2001-2018

EURUSD Data from 2001-2018

1.6

1.4 1.4588
1.4322
1.3977 1.375
1.3552 1.3368
1.32 1.3188
1.294
1.2 1.2594
1.1846 1.2005
1.1283 1.1482
1.0862
1 1.0487 1.0517

0.8

0.6

0.4

0.2

0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Fig: 2.1(b)
The above table and chart shows the value of Euro against USD from 2001-2018 which
shows that there has never been constant increase or decrease Euro against USD but from
2014-2016 there was gradual decrease in the value of Euro against USD and then it again
increased from 2017 and in the beginning of 2019 there has been redemption in the value of
Euro against USD due to reducing the interest rates by the European Central bank

The final main reason for the appreciation for the appreciation of
USD on the world currencies is that the forex market traders are more intensified the
strengthening of the USD. At the same time they are using leverage to further weakening the
Euro and the giving power to the US Dollar over other currencies of the world.

Page | 26
 2. Depreciation in the Rupee Value
The USD appreciation is also having it’s impact on the Indian currency value which may be
because of many reasons. India is facing this problem since decades and is still continuing the
same. The Indian Rupee was actually linked to the British Pound at the time independence
i.e., from 1950-1973 and the value of Rupee was almost equal to that of USD. Since after the
establishment of external borrowings the value of the started depreciating and from than the
problem has not been solved. The value of the Rupee which was around 4.79 during 1950-
1966 pegged to 72.9 by 2019 which is due to many reasons like huge imports, high inflation,
external borrowings, investments in FDIs and many more.
The devaluation in the value of the currency has been constantly
increasing since decades which is creating problems to the Reserve Bank of India and the
Central Government. The main for the devaluation of the currency value is the import of gold
and oil and the less exports, inflation, forex trading and at the same time heavy investments in
the FDIs which is leading to the appreciation in the value of US Dollar against the Indian
Rupee. All this reasons lead to the devaluation of the Indian Rupee value against the US
Dollar. The below table shows the data of the depreciating value of Rupee against US Dollar.

Page | 27
 Table. 2.2: USDINR from 2001-2018

sr.no. Year 1USD=INR

1 2001 48.22
2 2002 47.95
3 2003 45.625
4 2004 43.25
5 2005 44.995
6 2006 44.115
7 2007 39.405
8 2008 48.62
9 2009 46.41
10 2010 44.712
11 2011 53.015
12 2012 54.741
13 2013 61.81
14 2014 63.035
15 2015 66.208
16 2016 67.955
17 2017 63.84
18 2018 69.57
19 Mean 52.97089
20 SD 9.787332
21 CV 0.184768
Table: 2.2

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 FIG 2.2: USDINR from 2001-2018

1USD=INR
80

70
69.57
66.20867.955
60 63.84
61.81 63.035

50 53.01554.741
48.22 47.95 48.62
45.625 46.41 44.712
40 43.25 44.99544.115
39.405
30

20

10

0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

1USD=INR

Fig: 2.2
The above table and chart shows that there has been constantly negative impact on the INR
and thus the value of the Indian currency has always been declining since from 2001-2018
which was Rs.48.21 in the year 2001 to Rs.69.57 by 2018 and there’s still negative
movement in the value of the currency.

3. Interest Rates

Interest rates on deposits will also have the greater impact on the value of the currencies. As
we have already spoken about the good interest rates Fed bank and low interest rates of Euro
will have positive impact on USD and negative impact on Euro.
India is also facing the same kind of situation from years which
has been one more important reason for the declining in the value of INR is it’s less interest
rates on the investments and the deposits then that of the Fed which attracts the investors to
invest in the US Central Bank. The RBI has been reducing the value of the interest rates on
the investments which has created a negative impact on the Indian economy and the Indian
Investors which is also effecting the value of the Indian currency. The RBI is constantly

Page | 29
reducing down the interest rates on the deposits which is making the Indian Investors to
invest in the Forex market.

Table 2.3: Interest rates of India from 2001-2018

Sr. no.
Year Interest Rates
1
2001-01-01 7.00
2
2002-01-01 6.46
3
2003-01-01 6.08
4
2004-01-01 6.00
5
2005-01-01 6.00
6
2006-01-01 6.00
7
2007-01-01 6.00
8
2008-01-01 6.00
9
2009-01-01 6.00
10
2010-01-01 6.00
11
2011-01-01 6.00
12
2012-01-01 8.83
13
2013-01-01 8.96
14
2014-01-01 9.00
15
2015-01-01 8.27
16
2016-01-01 7.13
17
2017-01-01 6.46
18
2018-01-01 6.50
Table: 2.3

Page | 30
 Fig 2.3: Interest Rates of India from 2001-2018:

Interest Rates
10

9
8.83 8.96 9
8 8.27

7
7.13
6 6.46 6.46 6.5
6.08 6 6 6 6 6 6 6 6
5

Fig: 2.3
The above table and the chart shows that the interest rates has been constantly changing and
is the RBI is also reducing down the value of the Interest rates after the year 2014 and since
than it has been going on decreasing by 2018 the interest has been reduced to 6.5%.

4. Inflation
The Indian currency has also created the inflation in the Indian Economy and the also lead to
more depreciation of the Indian Rupee value against the USD and other major currencies of
the world like GBP, Euro and others. Currency market had larger impact on the inflation of
India which is leading to paying more of the domestic currency to same foreign value.

So, this effect leads to the growth in the percentage of rate of

inflation in the negative way as it leads to paying more amount not only in the form of returns
but also to the imports made by the country or the producers, interest rates and any other
financial services. The inflation rates of India has been given in the below table.

Page | 31
 Table 2.4: Inflation rates of India from 2008-2018

Sr. no. Year Inflation Rates

1 2008-01-01 2.18
2 2009-01-01 1.89
3 2010-01-01 2.30
4 2011-01-01 2.43
5 2012-01-01 2.33
6 2013-01-01 2.37
7 2014-01-01 2.21
8 2015-01-01 1.76
9 2016-01-01 1.57
10 2017-01-01 1.91
11 2018-01-01 2.08
12 Mean 2.09
13 SD 0.276894234
14 CV 0.132274315
Table: 2.4

Fig 2.4: Inflation rates from 2008-2018

Inflation Rates
3

2.43 2.37
2.5 2.3 2.33
2.18 2.21
2.08
2 1.89 1.91
1.76
1.57
1.5

0.5

Inflation Rates

Fig: 2.4

Page | 32
So the above table and graph shows the inflation rates has been increasing constantly and is
being affecting Indian economy.

5. Gross Domestic Product

The currency market or the USD market is also having it’s effect on the GDP of India. Higher
inflation rates in India is likely to beat the short term growth prospects of the Indian
economy. The declining value of the Indian rupee is also having it’s major impact on the
GDP of India as this may lead to paying more amount of the domestic value for the same
amount of the foreign value due to the depreciation effect of the domestic currency.

The domestic producers are also effected at a very large rate due to
the declining Indian currency value. The producers are needed to pay the increased cost of
inputs which are being imported from other nations of the world i.e. paying more amount of
INR to the same value of the input which in turn leading to less profit margins to the
producers. The table below shows the GDP of India from 2001-2013.

Page | 33
 Table 2.5: GDP data of India from 2001-2018

Sr. no. Year GDP

1 2001-02 5.52
2 2002-03 3.99
3 2003-04 8.06
4 2004-05 6.97
5 2005-06 9.48
6 2006-07 9.57
7 2007-08 9.32
8 2008-09 6.72
9 2009-10 8.59
10 2010-11 9.32
11 2011-12 6.21
12 2012-13 4.96
13 Mean 6.43
14 SD 2.04
15 CV 0.32
Table: 2.5

Page | 34
 Fig 2.5: GDP of India from 2001-2013

GDP
12

10

9.48 9.57
9.32 9.32
8 8.59
8.06

6.97
6 6.72
6.21
5.52
4.96
4
3.99

0
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

GDP

Fig: 2.5
The above table and the graph shows the data of the GDP from 2001-2013. The graph and
tables indicates that the change is constant in GDP of India. The data shows that the though
the GDP was growing from 2009 to 2011 than it suddenly fallen down to 4.96 by 2013. This
indicates that the USD and Currency market thus have impact on the growing Economy of
India.

6. Foreign Direct Investments

The Indian Economy is also getting affected after the implementation of the FDIs in India.
The FDIs in India has been at very drastic rate and is effecting the value of the INR against
USD as most of the FDIs are in the form of USD and from America.

The value of the FDIs which was USD74 Million in the 1991
increased the value to USD43478.27 Million by 2017. So the effect of this will be on that the

Page | 35
investors who have invested in FDIs will get to pay the more value of the domestic currency
to the same amount of foreign currency in the form of dividends, interests, principal
repayment, etc. So this will lead declining in the value of the INR against USD and the effect
on the Indian Economy as well.

Table 2.6: FDIs in India from 2001-2016

Sr. no. Year FDIs in Millions

1 2000-01 2378.68
2 2001-02 4027.69
3 2002-03 2704.34
4 2003-04 2187.85
5 2004-05 3218.69
6 2005-06 5539.72
7 2006-07 12491.77
8 2007-08 24575.43
9 2009-10 31395.97
10 2010-11 21383.05
11 2011-12 35120.8
12 2012-13 22423.58
13 2013-14 24299.33
14 2014-15 30930.5
15 2015-16 40000.98
16 2016-17 43478.98
17 Mean 19134.83
18 SD 14591.41
19 CV 0.762557
Table: 2.6

Page | 36
 Fig 2.6: FDIs in India from 2000-01 to 2016-17

FDIs
50000

45000 43478.98
40000.98
40000
35120.8
35000
31395.97 30930.5
30000
24575.43 24299.33
25000 22423.58
21383.05
20000

15000 12491.77

10000
5539.72
4027.69
5000 2378.68 2704.342187.853218.69

FDIs

Fig: 2.6
The above table and the figure shows that the FDIs in India is growing at a very high rate.
The above data also indicates that the FDI had been gradually been increasing at very drastic
rate from 2006-07 and by 2016-17 this touched the highest mark ever by total FDI amount of
43478.98.

7. Imports of gold and silver

India always had the greater demand for jewelleries not only since decades but from
centuries. Gold is the majorly demandable form of jewellery since centuries. So to fulfil this
demand the government of India is importing the gold from decades at a very high value and
large quantities. The demand for the gold still going on increasing, so to fulfil this the
government is increased the import of gold and silver at the same time from some years.

The impact of this is falling on the economy of India and at the same
time on the currency value of India as we need to pay the more of domestic currency for the

Page | 37
same quantity of gold or silver purchased or imported previously. The import of gold which
was 352 tons in 1999 increased to 1079 tons by 2011 and 718 tons by 2018 and at the same
time the import of silver which was around 3500 tons by 1999 increased to 6955 tons by year
2018.

Table 2.7(a): Gold imports from 2001-2018

Sr.no Year Import in tons
1 2001 550
2 2002 368
3 2003 469
4 2004 674
5 2005 838
6 2006 690
7 2007 787
8 2008 791
9 2009 653
10 2010 981
11 2011 1079
12 2012 979
13 2013 824
14 2014 776
15 2015 949
16 2016 582
17 2017 901
18 2018 718
19 Mean 756.0555556
20 SD 188.749592
21 CV 0.249650427
Table: 2.7(a)

Page | 38
 Fig 2.7(a): Gold imports of India from 2001-2018

Import in tons
1200
1079
981 979
1000 949
901
838 824
787 791 776
800
718
674 690
653
582
600 550
469

400 368

200

0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Import in tons

Fig: 2.7(a)
The above table and the figure is the data of the gold imports of India from 2001-2018 and
which shows that the imports of always been in increase and but not decreasing and the graph
also shows that the highest quantity of gold is supplied in the year 2011.

Page | 39
 Table 2.7(b): Silver imports data of India from 2008-2018.

Sr. no. Year Import in tons

1 2008 5390
2 2009 1250
3 2010 2639
4 2011 4713
5 2012 2166
6 2013 6144
7 2014 7169
8 2015 8529
9 2016 3546
10 2017 5398
11 2018 6955
12 Mean 4899.909091
13 SD 2288.106836
14 CV 0.466969242
Table: 2.7(b)

Page | 40
 Fig 2.7(b): Import of silver by India from 2008-2018

Silver imports
9000 8529

8000
7169
6955
7000
6144
6000 5390 5398

5000 4713

4000 3546

3000 2639
2166
2000
1250
1000

0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Import in tons

Fig: 2.7(b)

The followed table and the figure shows the import of silver from 2008-2018.

8. Imports of Oil

Highly populated countries like India where oil and petroleum is used at a very large rate.
The demand for the oil has been increasing since years and is never in decrease. The demand
is very high of heavy users of vehicles and the oil consuming goods. This will also leads to
paying more amount of the Indian Rupee to the same amount of the oil valued previously as
the oil is also imported from the America and the Arab countries.
As the demand for the oil has been very high and so to meet the needs of
the people of India the government importing large amount of oil from the different foreign
countries by paying the large amount of domestic currency which is having impact on the
Indian economy.

Page | 41
 Table 2.8: Oil imports from 2001-2013

Sr. no. Year Import in Barrels

1 2001-02 14000.3
2 2002-03 17639.5
3 2003-04 20569.5
4 2004-05 29844.1
5 2005-06 43963.1
6 2006-07 56945.3
7 2007-08 79644.5
8 2008-09 93671.1
9 2009-10 87135.9
10 2010-11 105964.4
11 2011-12 154967.6
12 2012-13 169319.3
14 Mean 72805.38333
15 SD 52233.38634
16 CV 0.717438518
Table: 2.8

Page | 42
 Fig 2.8: Oil imports by India from 2001-2013

Import in Barrels
180000
169319.3

160000 154967.6

140000

120000
105964.4
100000 93671.1
87135.9
79644.5
80000

56945.3
60000
43963.1
40000 29844.1
17639.5 20569.5
20000 14000.3

0
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Fig: 2.8
The above table and the graph consists of the data of Oil imports by India from 2001-2013.
Both shows that the demand for oil has always been increasing and is increasing at a very
high rate and the only year in which there was a decline in the demand of oil i.e. 2010. So,
thus will have the impact on the Indian economy and as well as the value of the domestic
currency.

9. External Debts/Borrowings
India did not have policy of external borrowings till the 1950. But from 1951 after the
implementation of five year plans India started external borrowings and since from than the
external borrowings have touched skies by borrowing from the Fed Bank.

So the effect of the external borrowings has fallen on the Indian currency
value in the negative aspects and also the economy of India as this also leads to paying more
of domestic value to the same value at the beginning of the funds borrowed from abroad. The
impact will be on not only the Indian economy but also on the common producers who

Page | 43
accepts the FDIs or borrowings from abroad in the form of repayment, interests, dividends
etc. The below table shows the data of the external borrowings from 2001-2018.

Table 2.9: External Borrowings by India from 2001-2013

Sr. no. Year External borrowings in MIL.

1 2001-02 104.82
2 2002-03 117.87
3 2003-04 122.59
4 2004-05 120.22
5 2005-06 158.5
6 2006-07 202.93
7 2007-08 225.99
8 2008-09 249.99
9 2009-10 290.28
10 2010-11 260935
11 2011-12 305861
12 2012-13 345498
14 Mean 76157.26583
15 SD 138632.3006
16 CV 1.820342407
Table: 2.9

Page | 44
 Fig 2.9: External Borrowings by India from 2001-2013

External Borrowings
400000

345498
350000
305861
300000
260935
250000

200000

150000

100000

50000
104.82 117.87 122.59 120.22 158.5 202.93 225.99 249.99 290.28
0
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Fig: 2.9
So the table and the figure represents the data of the External borrowings of India from 2001-
2013. The graph indicates that the external borrowings at a very rate from 2010-11 which was
USD.260935Millions from USD290.28Millions in the 2009-10 and since then the trend is
still continuing, which is directly having it’s impact on the Indian economy and the domestic
currency value of India.

All the above economic factors are effecting the Indian economy and also depreciating the
currency value of the India against USD as all these economic factors are majorly brought up
in US Dollar. Of all this factors FDIs, Oil imports and external borrowings are majorly
impacting factors on the Economy and the Rupee value as well. There are even some other
economic factors which are also effecting the Indian Economy like capital inflows. The data
of all this factors are presented in tabular formats and in the graphical formats as well.

Page | 45
 OBJECTIVE-2
To study different stringent measures taken by Central Bank &
government to make rupee stronger

Page | 46
Recent Policies decided by Central Government and RBI to control the
Indian Economy and to strengthen it.

Foreign Trade Policies decided by RBI and Central Government of India

 In the Mid-Term Review of the Foreign Trade Policy (FTP) 2015-20 the Ministry of
Commerce and Industry has enhanced the scope of Merchandise Exports from India
Scheme (MEIS) and Service Exports from India Scheme (SEIS), increased MEIS
incentive raised for ready-made garments and made- ups by 2 per cent, raised SEIS
incentive by 2 per cent and increased the validity of Duty Credit Scrips from 18
months to 24 months.
 As of December 2018, Government of India is planning to set up trade promotion
bodies in 15 countries to boost exports from Small and Medium Enterprises (SME) in
India.
 In September 2018, Government of India increased the duty incentives for 28 milk
items under the Merchandise Export from India Scheme (MEIS).
 All export and import-related activities are governed by the Foreign Trade Policy
(FTP), which is aimed at enhancing the country's exports and use trade expansion as an
effective instrument of economic growth and employment generation.
 The Department of Commerce has announced increased support for export of various
products and included some additional items under the Merchandise Exports from
India Scheme (MEIS) in order to help exporters to overcome the challenges faced by
them.
 The Central Board of Excise and Customs (CBEC) has developed an 'integrated
declaration' process leading to the creation of a single window which will provide the
importers and exporters a single point interface for customs clearance of import and
export goods.
 As part of the FTP strategy of market expansion, India has signed a Comprehensive
Economic Partnership Agreement with South Korea which will provide enhanced
market access to Indian exports. These trade agreements are in line with India’s Look
East Policy. To upgrade export sector infrastructure, ‘Towns of Export Excellence’
and units located therein will be granted additional focused support and incentives.

Page | 47
  RBI has simplified the rules for credit to exporters, through which they can now get
long-term advance from banks for up to 10 years to service their contracts. This
measure will help exporters get into long-term contracts while aiding the overall
export performance.
 The Government of India is expected to announce an interest subsidy scheme for
exporters in order to boost exports and explore new markets.

Policies for the External Sector

 In November 2018, India and Iran had signed a bilateral agreement to settle oil trades
in Indian currency through public sector bank United Commercial Bank (UCO) Bank.
 In June 2018, a Memorandum of Understanding (MOU) was signed between the
Governments of India and China to export non-basmati rice to China. As of October
2018, total 24 mills got clearance to export the same.
 Bilateral trade between India and China reached US$ 84.44 billion in 2017 with 40
per cent increase in Indian exports to China.
 In August 2018, US upgraded India’s status as a trading partner on par with its North
Atlantic Treaty Organization (Nato) allies.
 India’s external sector has a bright future as global trade is expected to grow at 4 per
cent in 2018 from 2.4 per cent in 2016.
 Bilateral trade between India and Ghana is rising exponentially and is expected to
grow from US$ 3 billion to US$ 5 billion over the coming three years, stated Mr
Aaron Mike Oquaye Junior, Ghana's Ambassador to India.
 India has revised its proposal on trade facilitation for services (TFS) at the World
Trade Organisation (WTO) and has issued a new draft, with the contents being more
meaningful and acceptable to other member countries.
 The Union Cabinet, Government of India, has approved the proposed Memorandum
of Understanding (MOU) between Export-Import Bank of India (EXIM Bank) and
Export-Import Bank of Korea (KEXIM).
 The Goods and Services Network (GSTN) has signed a memorandum of
understanding (MOU) with Mr Ajay K Bhalla, Director General of Foreign Trade
(DGFT), to share realised foreign exchange and import-export code data, process
export transactions of taxpayers under goods and services tax (GST) more efficiently,
increase transparency and reduce human interface.

Page | 48
  In March 2017, the Union Cabinet approved the signing of the customs convention on
the international transport of goods, Transports Internationaux Routiers (TIR) making
India the 71st signatory to the treaty, which will enable the movement of goods
throughout these countries in Asia and Europe and will allow the country to take full
benefit of the International North South Transportation Corridor (INSTC).
 Mr Richard Verma, the United States Ambassador to India, has verified that India-US
relations across trade, defence and social ties will be among the top priorities of the
newly elected US President Mr Donald Trump's administration.

India is presently known as one of the most important players in the global economic
landscape. Its trade policies, government reforms and inherent economic strengths have
attributed to its standing as one of the most sought after destinations for foreign investments
in the world. Also, technological and infrastructural developments being carried out
throughout the country augur well for the trade and economic sector in the years to come.
Boosted by the forthcoming FTP, India's exports are expected reach US$ 750 billion by
2018-2019 according to Federation of India Export Organisation (FIEO). Also, with the
Government of India striking important deals with the governments of Japan, Australia and
China, the external sector is increasing its contribution to the economic development of the
country and growth in the global markets. Moreover, by implementing the FTP 2014-19, by
2020, India's share in world trade is expected to double from the present level of three per
cent.
*Provisional estimates at current prices
Exchange Rate Used: INR 1 = US$ 0.0143 as on December 31, 2018

Page | 49
 OBJECTIVE-3
To get 2 portfolios for the company and 30 subscribers for the
online course which the company is providing
Intern Duties
In the duration of 14 weeks of Summer Internship Program at JMarathon Advisory
Services Pvt. Ltd., hereby listing out the tasks performed, targets that were given and the
targets that has been achieved.
Table 3.1: Tasks performed

Weeks Task performed

Week 1(19 feb – 23 feb) Introduction and trading terminology at the same time
introduction to the company environment
Week 2(26 feb- 02 march) Basics in trading (Forex market)

Week 3(04 march – 09 march) Technical analysis over Forex and Indian market

Week 4(11 march – 16 march)
Week 5(18 march- 23 march)
Demo competitions on Forex trading and fundamentals of
trading.
Impact of Currency market self-study towards project
execution, demo competition and Video course
subscriptions.

Week 6(25 march- 30 march)
Week 7(01 April- 06 April)
Week 8(08 April – 13 April)
Week 9(15 April- 20 April)
Week 10(22 April- 27 April)
Week 11(29 April- 04 May)
Week 12(06 May- 11 May)
Forex market trading and opened a live account with
15000INR i.e. 1st portfolio
Made one video subscription and second live account with
15000INR i.e. 2nd portfolio.
Overview of Indian marketing and its strategies at the
same time preparations were made for interim report.
Indian trading competition and the final preparation of the
interim report.
Made three video subscriptions for the company regarding
the course and started live Indian stock market trade
Initial preparation for the final report and generation of
nearly 15% profit from the Indian stock market trade.
Collection of information regarding the final report and
started trading in the Forex market

Page | 50
Week 13(13 May- 18 May)
Week 14(20 May – 24 May)
Preparation of the final report and we were asked to bring
more five subscribers for the company’s course.
Preparation of Final report, taking valuable suggestions
from the company employees and covering up all the work
related to office.

Table: 3.1

Tasks Assigned
 Generation of two portfolios worth of 15000/- each from the customers.
 Generation of ten subscribers for the online course developed by the company
 Analysing the Forex market, Nifty and Sensex of Indian stock market.

Tasks Achieved
 Generated two portfolios worth of 15000/- from the customers for Forex market.
 Able to generate three subscribers for the online course developed by the company.
 Participation in the demo competition on Forex market and Indian market conducted
by JMararthon advisory.

Strategies made in SIP

 Approaching the right kind of clients (i.e. friends and family members who are
interested) to invest into the forex market and get two portfolios of INR15000 each.
 Getting at least 10% returns on the investments made in Indian market and
maintaining the portfolios without loss by following various technical indicators and
risk management strategies.
 Finding the subscribers by approaching the right kind of customers i.e., students
people who are interested in trading but cannot do and those who are seeking for
doing the trading by explaining the details of the course, it’s price and discount
available, other benefits which the company is providing along with subscription for
the E-learning course.

Page | 51
Limitations:

 The research is mainly conducted on the basis of secondary data and websites which
may not be accurate.
 The research will be mainly focused on the selected currency pairs (i.e., USD) which
may not be able to describe the whole currency market.
 The research is not be considering all the factors which are effecting Indian Economy.
 Finding the data for the study of 20 years was very problematic. So for some factors
the data of only 10 years has been taken and analysed.
 Time constraints.

Page | 52
Findings

 From the study, it has been found that the USD is effecting the value of INR but also
the Indian Economy as most of the FDIs, borrowings are in the form of USD.
 USD is not only effecting the Indian Economy or the Indian Currency but also the
different economies and currencies all over the world EURO, Yen and others.
 It has been found from the study that the majorly effecting economic factors to the
Indian economy are crisis in BOP, large investments in FDIs, external debts,
depreciation in INR and capital inflows in the form of USD.
 It also been found from the study that the Euro market has 56.7% of the US market.
So any negative trends in the Euro market will have the positive trend in the US
market.
 It has been observed from the study that the depreciation in the value of Indian
currency value has been accelerated from 1991-92 i.e. after the liberalization period.
 It is been found that the India followed the fixed FX rate policy in which the RBI
fixes the rate of different major currencies of the world like USD, GBP, EURO but
later started following the floating rate policy where the market fixes the FX rate.
 It has also been found that the Fed rates were all time low from 2008 to 2015 i.e. 6%
and then it again raised but still more than the Euro market which is appreciating the
USD.
 It has been observed from the study that the interest rates of RBI were constant for 8
years i.e. from 2004-11 which 6%.
 The findings from the study is that the FDI are almost increased by 20 times.
 Import of oil is constantly increasing but never decreasing from 2001 to 2013 except
in one year i.e. 2010 and te quantity increased from 14000 barrels in 2001-02 to
169319.3 barrels by 2012-13.
 The policy of external borrowings started after the implementation of 5 year plans
which created negative impact on the Indian economy.
 The external borrowings were suddenly increased at a very shocking amount of
360935Million in 2010-11 from 290.28Million in 2001-10 i.e. it increased nearly 100
times.

Page | 53
Conclusion

As of now the data required for the project has been collected and the methodology for
analysing the data has been decided and also the recent strategies decided by the government
for maintaining the stability and strengthening the currency against dollar has also been taken
into consideration (i.e. Objective 2). From the internship by working with the start-up
company has been very helpful as we got many opportunities to learn new things and face
any new issues. After getting two portfolios and 3 subscribers for the company we learned
how to generate business for the company. After the training of 15 days we got an overview
on the Indian and Forex market and how to trade in the market. We even traded in the Forex
market and also had the experience of trading in the Indian stock market and learned how to
not make any losses by trading in the stock market.

The study includes the economic factors which are affecting the Indian
economy at a very massive rate and creating a negative impact on the Indian currency value
as well. The study also included the data of various economic factors which are effecting the
economy for 10-20 years. The analysis of this data is also done and it has been proved that
the currency market is creating the negative impact on the Indian economy and the value of
the INR in negative way.

The study also proves that the negative impact in European market will
create a positive impact on the USD market. The USD effects the other world currencies as
well and not only India. The study also concludes that the appreciation in the USD will
depreciate the different world currencies.

So the conclusion of the study is that the depreciation in the value of

INR against USD is creating a massive impact on the Indian economy and the policies and
strategies made by the Central Bank and Central Government will help the Indian economy to
create stability and also strengthen the economy and the value of the INR as well.

Page | 54
Suggestions

 JMarathon Advisory Services should expand it’s branches all over the India and get
into competition with major trading companies like Zerodha, Karvy, Sharekhan etc.
 The company should increase the authorised capital to 10 lakhs, as it is necessary for
expanding the business all over the country.
 The company should also enter into other financial services like the mutual funds,
insurance etc.
 The government of India should put some restrictions on the FDIs as the government
now is allowing 100% FDIs.
 The government should stop external borrowing, so that the economy can be control.
 The government and the RBI should again adopt the policy of fixed FX rate system as
it was in the beginning.
 The government should also put some restrictions on the percentage of capital
inflows.

Page | 55
 References

 Chellasamy P, “Depreciation of Indian Currency and Its Impact on

Indian Economy”, Vidyaniketan Journal of Management and Research,
Vol.1 Issue-2 July – December 2013.
 Shelly., S, (2012). “An Analytical study on Indian Currency Rupee Depreciation
against the US Dollar and Its Economic Impact”, Journal of Economic and
Management, Vol.1, Issue-1, pp.74.83.
 Sumeet., A, (2012). “Effect of Devaluation on Indian Currency in
Indian Economy”, International Referred Research Journal, Vol.3, Issue-
28, pp.58-59.
 Saravanan (Oct, 2015), “Rupee Depreciation and it’s effect on Indian
Economy”, J.K.K Nataraja College of Arts & Science, Komarapalayam-
638183.
 Anshu Grewal MRIEM, Rohtak, Haryana (India), “Impact of Rupee- Dollar
Fluctuations on Indian Economy: Challenges for Rbi & Indian Government”. IJCSMS
International Journal of Computer Science and Management Studies Vol. 13, Issue
06, August 2013 ISSN: 2231-5268 www.ijcsms.com
 https://www.google.com/search?q=interest+rates+of+India+from+2001-
2018&oq=interest+rates+of+India+&aqs=chrome.0.69i59j69i57j0l4.9502j0j4&source
id=chrome&ie=UTF-8. For interest rates data.
 https://www.google.com/search?q=inflation+rate+of+India+data+from+2001-
2018&oq=inflation+rate+of+India+data+from+2001-
2018&aqs=chrome..69i57.79478j0j4&sourceid=chrome&ie=UTF-8. For inflation
data.
 blob:https://in.investing.com/9eafe01c-cc0c-4b7d-8449-032ce36d9915. USDINR historical
data.
 blob:https://www.macrotrends.net/b5ffd77a-e5cc-4446-b1be-4141dec8d9e7. Fed fund rates
data.
 blob:https://www.macrotrends.net/b16afdfc-b024-4f43-84d5-12f553c5424f. EURUSD
exchange rate data.
 indian Gold and Silver Import Charts - Smaulgldsmaulgld.com.

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 https://community.data.gov.in/total-foreign-direct-investment-equity-inflows-from-
2000-01-to-2016-17/
 https://sso.tradingeconomics.com/authComplete.html?returnUrl=https://tradingecono
mics.com/euro-area/currency#.
 India Inflation Rate | 2019 | Data | Chart | Calendar | Forecast |
Newstradingeconomics.com

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