The value of money changes over time, especially when compared with stronger currencies like the US dollar.
In India, one dollar was equal to Rs. 45.68 in 2000. A decade later, in 2010, it was almost the same at Rs. 45.71. But by 2020, the value had risen to Rs.74.13, and in 2025 it stands around Rs. 88.06. This shows that the rupee has lost strength against the dollar.
Why does this happen? India imports a lot of goods, like crude oil, but our exports are less. This creates a trade gap, meaning we spend more dollars than we earn. Also, prices in India rise faster than in the US, which weakens the rupee.
On top of this, the US dollar is trusted worldwide. Whenever the American central bank raises interest rates, people move money there, making the dollar stronger and the rupee weaker.
Now let’s see China. In 2000, one dollar was about 8.28 yuan. By 2010, it became 6.77. In 2020, it was 6.69, and in 2025, about 7.12. Unlike the rupee, the yuan has stayed more stable and strong.
The reason is China exports a huge amount of goods, bringing in lots of dollars. This shows how strong exports help a country’s currency remain steady.
Being India, the world’s most populous nation and home to the largest youth population, even more than China, the country should focus more on manufacturing to compete with China, stay relevant globally, and keep the rupee stronger. But who will bell the cat?
Most of the startups that Indian youth are working on today are in software and computer apps. While this is good for innovation, it does not directly strengthen large-scale manufacturing or exports.
Why can’t the government open doors for free land and incentives for manufacturing hubs and startups in heavy industries, instead of giving free land to software companies where it is not really necessary?
The irony is that India is still buying urea from China, while companies and luxury households continue to import furniture from Foshan in China. Even in middle class households, many everyday items are made in China.
In shopping malls across India, there are numerous outlets selling only Chinese goods, offered at cheaper prices and enjoying huge patronage from people.
A serious debate on this issue is needed. It could open the eyes of policymakers and the public to the importance of building a strong manufacturing base, creating jobs, boosting exports and strengthening India’s economy in the long run.