In this instalment of the TransferGo Blog series on world currencies we explore currency in India along with a brief history of money in this developing country.
India presents an interesting opportunity for economists to study a developing economy. Present day India is considered a mixed developing country, which means it has a mixture of advanced and somewhat ancient industries; many of the traditional industries are agricultural. India’s economy is the sixth largest in the world and one of the fastest growing. The service sector is one of the main drivers of the economy accounting for more than 50% of GDP. GDP stands for Gross Domestic Product and is a monetary measure of the market value of all goods and services produced in a period of time.
The currency of India is the rupee (INR). The rupee is one of the world’s oldest currencies and dates back to at least the 6th century BCE. The rupee can be subdivided into 100 paise, with a single unit being a paisa. Coins with a denomination of 25 paise or less were demonetized in 2011 and are no longer legal tender.
In the last few years the government has taken several actions in regards to Indian currencies in an attempt to control and bolster the economy. On 8 November 2016 it was announced that 500 and 1000 rupee banknotes would be demonetized as of midnight that day. This was part of an attempt to battle counterfeiting problems and to control unaccounted monies that could possibly be tied to criminal activities.
New 200 rupee banknotes were introduced in 2017 to help fill the demand for larger denomination notes.
One of the issues that has long plagued the Indian economy was the fact that the rupee was on the silver standard while most of the world’s stronger currencies were on the gold standard.
Currently there are 91 INR to £1, 80 INR to €1, and 68 INR to $1.
Transfer money to India from the UK
The Indian diaspora is the world’s largest with over 15 million Indian migrants living abroad. Indian nationals can be found in almost every country in the world and consists of both highly skilled and trade workers.
The diaspora is also responsible for the largest percentage of the world’s remittances, money sent back home to family members by nationals living and working abroad.
Remittances play a major role in the Indian economy. Each year remittances exceed more than $65 billion.
TransferGo offers low cost and fixed exchange rates for transfers to India which means that the buying power is increased for those back home. TransferGo customers can find out more about our money transfers to India by clicking here. The TransferGo blog also regularly publishes articles on other world currencies.