The Evolution of India’s Exchange Rate Regimes: A Historical Analysis of the Indian Rupee and United states Dollar Dynamics from 1947 to 2024.

This This paper presents a comprehensive analysis of India’s evolving exchange rate strategies from 1947 to 2024, emphasizing the strategic interplay between the Indian Rupee (INR) and the US Dollar (USD). It segments the historical progression into distinct regimes—ranging from a fixed peg and crawling peg to dual exchange rates, managed float, and finally, a market-oriented system—each reflecting changing macroeconomic priorities and external pressures. Grounded in empirical research and key macroeconomic metrics, the study investigates how India’s domestic policy choices, global financial shifts, and geopolitical developments have influenced the valuation and volatility of the rupee against the dollar. It also evaluates the broader effects of these transitions on trade competitiveness, inflation control, foreign investment flows, and monetary policy independence. By distilling insights from over seven decades of exchange rate experimentation, the paper offers forward-looking perspectives for policymakers navigating today’s increasingly integrated and unpredictable global economy.