Paper I · 6 Indian Economy & Planning · 6.4.1 External sector

6.4.1.2 Exchange rates: fixed, floating and managed systems, NEER/REER, PPP and rupee convertibility

The exchange rate is the price of one currency in another; India moved from a fixed peg to a market-determined, RBI-managed float after 1991, with full convertibility on the current account but not on the capital account.

  • APPSC Paper I · Paper I
  • Advanced level
  • 7 min read
  • Full course

Key terms

  • exchange rate
  • fixed
  • flexible
  • managed float
  • devaluation
  • depreciation
  • NEER
  • REER
  • PPP
  • LERMS
  • convertibility
  • Tarapore Committee
  • FEMA
  • Liberalised Remittance Scheme

What this note covers

  1. Core factsFoundation
  2. ExplainedStandard
  3. DeeperAdvanced
  4. Mains writingMains writing
  5. Common trapsFoundation
  6. Quick revisionFoundation

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