(MENAFN- Khaleej Times) The Abu Dhabi Chapter of the Institute of Chartered Accountants of India or ICAI recently organised an Iftar along with a professional development seminar for leading chartered accountants and dignitaries in the UAE.
The seminar was addressed by Sudhir Shetty, COO of global operations at the UAE Exchange, and focused on the recent fluctuations of the Indian rupee.
Inaugurating the seminar, the chairman of the ICAI Abu Dhabi, Padmanabha Acharya stated that all Indians residing in the UAE were fortunate enough to get an 11 per cent increment, without doing much in 2013, due to freefall of Indian rupee.
He further added that in India, this could result in increased cost of imports, fuels and gold leading to inflation.
Shetty opened discussions with a brief history of the India rupee fluctuation, revealing how, in 1991, the rupee was devalued twice by then finance minister Manmohan Singh [present Prime Minister of India] to revive the Indian economy. At the time, one dollar was worth around 18 rupees. In 1995, it was 35 rupees; in 2000, it was worth 45 rupees and remained within a range bound of 42 to 46 rupees; until the end of 2011, when it jumped to 52 rupees. In May and June 2013, there was a sudden demand which spurred the dollar value to 60 rupees.
Giving an update on recent developments in the Indian economy, he added that global investors are not feeling comfortable in India. In addition, the lack of clarity in foreign investment policy and political instability are the major reasons for the rupee to further depreciate.
Shetty anticipated that uncertainty in the central government election will remain one of the major reasons that the rupee will not strengthen in near future.
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