Indian economy is apparently sliding down with Rupees seeing a downfall, leading growth falling below 5 %. Imports are becoming more expensive, stock prices are crashing, inflation is high and commodity prices are record high. Slump in the job market is also adding fuel to this turmoil situation. The depleted rupees has made virtually impossible for students who were aspiring to study abroad. Many have compared the present economy situation with that of 1991. But we are not that deep down as our foreign exchange reserves in 1991 was down to $ 3 billion and we have $ 280 billion foreign reserves now.

Why is Rupees sliding?

- Policy paralysis and political uncertainty ahead of 2014 polls made foreign investor jittery about India.
- Swelling current account deficit leading demand for dollars higher than supplies.
- Foreign investors are taking an exit route as they are nervous that profits may get offset by rupees depreciation.
- US economy is recovering so investors are investing is US assets.
- Widening current account deficit which hit to a record high of 4.8% of GDP, is putting extra pressure on Rupees.