How the Rupee’s Decline Exposes the Real Cost of India’s Economic Policies

 

How the Rupee’s Decline Exposes the Real Cost of India’s Economic Policies

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The steady fall of the Indian rupee is not an external shock or global inevitability. It is the result of domestic economic choices made over the last eleven years. Under the BJP government, the rupee has slipped from roughly 1.786 cents to about 1.1 cents. India imports most of its essential inputs, fuel, electronics, machinery, chemicals, and fertilizers. When the currency weakens, every import becomes more expensive. Manufacturers feel it first. Households feel it the most. A weakening currency is the clearest sign that the economic foundation of a country is eroding.

At the same time, India adopted a model that concentrated extraordinary wealth in the hands of a very small elite. A tiny fraction of the population saw staggering financial gains while the majority experienced stagnant wages, rising prices, and declining purchasing power. The contrast is undeniable. Gautam Adani’s wealth was estimated at about 7.1 billion dollars in 2014, and within a decade, even after market swings, it stands between 60 and 90 billion dollars. Mukesh Ambani grew from about 19 billion to over 110 billion in the same period. No other major Indian business groups saw this kind of acceleration.

These numbers dominate headlines, business forums, investor summits, and global media. They are presented as proof of “India Shining”. But wealth concentrated in a handful of business families does not reflect the economic health of 1.4 billion people. It reflects an uneven economy where opportunity, contracts, credit, and influence move in one direction while risk, debt, and inflation fall onto the public.

Most of India’s infrastructure roads, expressways, ports, airports is sold globally as evidence of rapid progress. But the truth is that this infrastructure is built on the backs of taxpayers, and then taxpayers are charged again through tolls and user fees to use what they already financed. Tolls have multiplied across the country. Basic public services increasingly come with service charges layered on top of existing taxes. The burden falls on citizens who are earning less in real terms than they did a decade ago. For many, every new highway or airport is not a sign of development, but another financial cost.

Even this infrastructure often fails the basic test of durability. Newly constructed bridges have collapsed within months. Highways crack soon after inauguration. Power plants and transport projects face delays, overruns, or abandonment despite massive funding. CAG reports repeatedly highlight mismanagement, irregularities, and poor returns. India’s national debt has crossed 235 lakh crore rupees, yet there is little visible improvement in mass employment or grassroots economic strength. When borrowing rises, and outcomes decline, the currency reflects that imbalance.

Through all of this, the government celebrates distributing free food grains to 850 million people. The Prime Minister repeats this number as an achievement. But no strong economy must feed more than half its population for free. This is not a success story. It is an economic alarm bell. It reveals that incomes are too low for people to buy their own food. It shows that purchasing power the heart of any real economy has collapsed.

Meanwhile, global media, foreign investors, and business publications often describe India as a rising economic superpower. The headlines focus on billionaires, unicorn startups, stock market highs, glossy events, and mega-project announcements. But these do not reflect the lived reality of most Indians. The world sees curated images of success, while on the ground, households struggle with rising costs, shrinking job opportunities, and a currency that keeps losing value.

The difference between perception and reality is widening. India is shining for a very small minority. The majority is carrying the costs.

Strong economies grow from the bottom up. They strengthen household earnings, expand secure jobs, reduce basic living costs, and ensure transparency in public spending. They use trained economists and institutional expertise to design policy. They build infrastructure that lasts decades, not months. They invest in people, not just in headlines.

A strong rupee is not made by corporate wealth or political messaging. It is made when millions of citizens are earning, spending, and participating in the economy with confidence. India cannot stabilize its currency or its economic future until it restores that foundation. The rupee’s decline is not a statistic. It is the mirror reflecting what the media narratives and political slogans try to hide.

If you want, I can now produce a version aimed at international readers, a version for Indian newspapers, or a version for policy journals, depending on where you plan to publish.