Foreign Direct Investment : It's Impact on Rupee Exchange Rate
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Abstract
The gradual liberalization of Indian economy has resulted in substantial inflow of foreign capital into India. Simultaneously dismantling of trade barriers has also facilitated the integration of domestic economy with world economy. FOi acts as a major source of investment in this context. Since FOi involves two or more country, it tends to deal with the other currency. The exchange rate pertaining to concerned countries determines the profitability. This study aims at evaluating the impact of FOi and FIi on Rupee Exchange Rate. In addition, study also evaluates the impact of Rupee Exchange Fluctuations on Import and Export of the country that contribute to the surplus or deficit to Balance of Trade (BOT).
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