What will happen if 1INR=1USD

Wildberries RU

As it is always a raise between Dollar VS Rupee in currency exchange market.

What will happen if 1INR=1USD?


In this article we are going to give an overview what happens if 1INR=1USD in very short period of time and how it is going to effect Indian economy .

Before we proceed please note that if the value of Indian currency becomes high its not like our economy will become strong.

Let us assume what if it happens in very short time


  1. we can buy hot gadgets like Iphone just for 600INR what we are trying to say here is that buying goods for Indians from the international markets will be cheaper.
  2. As a result every Indian starts buying luxurious goods from the international markets for the cheaper price.
  3. Indian utilities and food items like cool drinks you may get cheaper. As an example for 200ml coke bottle now you are paying 20 bucks with the value change you will get it for  some paise.
  4. Petrol prices will come down as transportation will become cheaper.
  5. Let us assume an Indian it employee who has 5yrs exp working in India will get paid monthly 50k and he is happy with change in economy with his pay.

As of now we just discussed only advantages.Now lets look at disadvantages for Indians.


  1. The Indian IT employee who moved to US will be making 3500$ per month. where as the same employee can make huge difference if he work from India.As a result IT companies stop outsourcing their work to India then it will effect entire Indian IT.Why will IT companies out source their work to India if they are getting some in the US just for 3500$ per month to their work.
  2. Then employees need to start working for lesser salaries if they want to retain their jobs as a result their salaries will drop to international standards even it becomes difficult to get the enough jobs.
  3. It also effects their personal life as we have adopted to floating model they can not pay their loans and  EMI’s. The banks would have huge unpaid loans and they will go bankrupt then government need to start printing more money to save banks from bankrupt.
  4. No foreign investors will dare to invest in Indian and also in Indian stock market.Now we are getting foreign investors  to invest in India just because of cheap labor cost.
  5. It also effects Indian exports why other countries buy goods from India when they can get it cheaper from other countries.

So finally what we want to say is the situation 1INR=1USD is just not affordable for growing or developing country.

Please feel free to share your views on this article in the comment section.

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