De-valuation of Indian Rupee, 1966

Devaluation of Indian rupee in 1966

on june 6 1966 or  6 -6-66 very crucial step was taken for Indian economy , when gov of india leaded by mrs Indira Gandhi devaluated Indian rupee by 36.5% . that gave rise to the value of American dollar by 57.4%  .

this action by Indira Gandhi was criticized  , and condemn by the political parties who regarded it as  degrading of Indian esteem and self respect .

CAUSES

1- In 1966 lal bahadur shastri died suddenly in Tashkent which leaded to uncertainity in Indian politics , amidst of it indra ganghi emerged victorious and become pm .

2- During this time india was reveged by series of drought through out india  which leaded to food insecurity and  spreading of  poverty .

3- For the first time india started importing rice and wheat for the first time which lead to depletion of Indian forex

4- Under food for peace program of usa , which aims at providing food to poor countries like india in their local currency

5- President lyndon Johnson  obliged to it , after provided aid asked india to liberalise its economy

After this Indira Gandhi devaluated Indian rupee by 36.5% and by this aster stroke Indira Gandhi protected india from thr threat of bankruptacy and from horror of famine .

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