Study on exchange rate movement and it s impact on current account

Abstract

This project we have attempted to demonstrate how exchange rate movement is affecting Balance of Payment for India by influencing underlying Current account. We have analyzed the root causes of the sudden appreciation of the rupee and how it has affected Current account. We looked at how appreciating rupee has impacted various industries. Further, we studied how these industries are coping with this situation especially in the IT and Textile sector. Further, we have looked at the various steps taken by RBI and Government of India to minimize the impact of rising rupee on exporters. Lastly, we have suggested what exporters should be doing in their individual capacity to overcome this issue.