India's Economic Problems: Difficult Road Ahead?

Case Studies | Case Study in Business, Management, Operations, Strategy, Case Study

ICMR HOME | Case Studies Collection

Case Details:

Case Code : ECON041
Case Length : 15 Pages
Period : 2012-2013
Pub. Date : 2013
Teaching Note :Not Available
Organization : --
Industry : -
Countries : India

To download India's Economic Problems: Difficult Road Ahead? case study (Case Code: ECON041) click on the button below, and select the case from the list of available cases:

Economics Case Studies | Case Study in Management, Operations, Strategies, Business Ethics, Case Studies


Pay through PayPal

Amount to be paid:

Prefer to pay in another currency ?
Select Currency for Payment

Exchange Rates: Click Here
Delivery Details: Click Here

Custom Search

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Chat with us

Strategic Management Formulation, Implementation, & Control, 12e

Please leave your feedback

Leave Your Feedback

ICMR India ICMR India ICMR India ICMR India RSS Feed

<< Previous

Problems on Many Fronts

As a result of India’s slowest economic expansion since 2009, BNP Paribas, France’s biggest listed bank, sharply cut India's GDP forecast to 3.7% for fiscal 2014, from an earlier estimate of 5.2%. Economists pointed out a number of economic challenges facing the Indian economy, the major ones being rupee depreciation; widening current account deficit; falling investment levels; inflation, and fiscal deficit.

Economics | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

Rupee Depreciation

In the fiscal year 2012-2013, the rupee depreciated by roughly 10% against the dollar. According to the Ministry of Finance, the rupee depreciation was "due to decline in exports on account of euro-zone crisis and widening of trade deficit, as imports remained resilient due to high oil prices and gold imports." A trade deficit of 10.2% of GDP in 2011-2012 created volatility in the supply-demand balance in India’s domestic foreign exchange market, which placed a downward pressure on the rupee.

The average exchange rate of the rupee per US dollar ranged between INR51.81 in April 2012 and INR56.03 in December 2012. On June 27, 2012, the rupee touched an all time low of INR57.22 per US dollar, which was a 10.9% depreciation over INR51.16 on March 30, 2012. On October 05 2012, the rupee appreciated to INR51.62 per US dollar. However, thereafter, the rupee began declining and the monthly average exchange rate of the rupee ranged between INR53.02 and INR54.78 per US dollar between October and December 2012. Such volatility in the rupee increased uncertainty in India's domestic market and impacted business confidence in 2012.

The rupee's volatility continued in 2013 also. The Indian rupee, which was around INR54 against the US dollar at the beginning of the year, fell to a record low level of INR68.80 on August 28, 2013. The slide of the rupee started in May 2013 and by August 2013 it had lost 20% of its value against the dollar. Increasing oil prices as a result of the Syria conflict, widening CAD, and capital outflows intensified the rupee’s fall in August 2013... .

Excerpts - Next Page>>

Custom Search

Case Studies on Generic Strategies - Vol. I

Economics for Managers Textbook
Textbooks Collection

Economics for Managers Workbook
ICMR books Collection

Case Studies on Generic Strategies - Vol. I

Case Studies on Generic Strategies
e-Book on Generic Strategies

Case Study Volumes Collection


Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Work Books, Case Study Volumes.