India, like many countries, faces various challenges that can make it vulnerable to inflation and currency depreciation. Inflation erodes the purchasing power of the currency, while currency depreciation can lead to higher import prices, affecting the economy. In this blog post, we will explore some major drawbacks that leave India vulnerable to these economic issues. 1. High Dependence on Imports India imports a large quantity of crude oil, gold, and other commodities, making it susceptible to fluctuations in global prices. Any sudden increase in the price of these commodities could lead to higher fuel prices, which can then drive up transportation costs and ultimately push prices higher across the economy. In addition, the cost of gold imports can affect the current account deficit and the value of the Rupee. Example: In 2018, global oil prices increased significantly, leading to higher fuel prices in India. This impacted inflation and the value of the Rupee as India is heavily depen...
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