Thursday, June 27, 2013

During the Raj: One Dollar was Equal to one Rupee

The Raj is one period in Indian history that has a flavor of its own.The Raj refers to the period of British rule in India. It is a debatable whether the Raj was good or bad, but all institutions in India from Banks to army and railroads to hill stations is a product of the Raj. In fact the Raj made a united India which had not existed for 2000 years.
A point that is not much discussed but should not be ignored is the value of the Rupee vis a vis the Dollar. In 1947 when the British left India one Dollar was equivalent to one Rupee. Thus the Dollar and Rupee were at par. Now the the exchange rate is lopsided and one Dollar is almost equal to 60 Rupees. How has this down slide occurred ? Scholars may like to study about it. Was the economy during the Raj better ? How has this down slide occurred?