Study on the Effect of Covid -19 on The Indian Economy (The Rate of Exchange)

Abstract

The study of the impact the economic variables and the foreign exchange rate on macroeconomic factors like GDP, which is studied through a separate model. The results will be indicate the money supply, short run yield differentials, CAD and inflation differential are not statistically the reasons for change in the exchange rate.   The rate of increase in exchange rate does not have a contribution in a big increase in the GDP because the exchange the rate has as optimistic impact on both import and export. The GDP will increase by a big amount only when the depreciation of rupee will cause decrease in export and increase in import.  As import has a positive correlation with exchange rate, the net export value has decreased