Mains Answer Writing
Concept Mapping Mentorship- Covering Syllabus Through Themes
- GS & Optional
Define exchange rate. Explain the different types of exchange rate regimes with reference to the Indian economy.
Category: Economy (GS -III),
Test Date: 17 Jan 2025
Approach:
- Introduction: Define exchange rate and its importance in an economy. Explain how the exchange rate reflects the price of one currency in terms of another.
- Types of Exchange Rate Regimes: Fixed Exchange Rate; Floating Exchange Rate; Managed-Float Exchange Rate
- Exchange Rate Regimes in the Context of India: Discuss India’s adoption of a managed-floating exchange rate regime since the 1990s, with the Reserve Bank of India’s (RBI) involvement in stabilizing the rupee during periods of volatility.
- Highlight India’s shift in the post-COVID period towards a regime resembling a fixed exchange rate in certain instances, where the RBI intervened heavily to stabilize the rupee amid global economic pressures.
- Wrap up your answer
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