In 2013, when PM Narendra Modi was in opposition, he had criticised the UPA government for its failure to check the constant fall of Indian currency against the US dollar. In his tweet, Modi said claimed that at the time of the independence Rs 1 was equivalent to 1 USD.
— narendramodi_in (@narendramodi_in) July 14, 2013
Today, when once again the Indian currency is witnessing a steep fall against the dollar, the same claim is being debated. But was it really so?
Firstly, there is no data to confirm this claim. Secondly, between 1947 and 1966, the value of the Indian rupee was not valued as compared to the British pound.
On behalf of the Center for Civil Society, a paper has been prepared on the devaluation of the currency. According to this paper, the British currency was devalued in 1949. After this, in 1966, the value of Indian currency was pegged against US dollar. In the meantime, after the devaluation, the rupee had reached a level of Rs 7.50 against the dollar.
One rupee was equal to 1 USD in 1947. It is not possible to believe this claim because when India became independent in 1947, it did not take any loans from other countries. The trade was also not equal.
Thirdly, India’s growth rate was 0.7% in 1947. In such a situation, it is not possible to keep the Indian rupee equivalent to the dollar.