The part where I said "GST reduced the money supply in the economy". Actually I meant demonetization and not GST. Apologies for the glitch. If you did catch the mistake, you are on a right track!
It's so amazing that how could one man can explain the concepts Economics, History, Geography and Geopolitics very well and in a very subtle way. Thank you Amit Sir!
Sir, You work very hard before making any Video....full research...How to present...What mistakes others do that can be corrected....and also taking care of making it interesting not boring.......Amazing Sir...I appreciate...
You never cease to amaze me. You write about science, technology, geopolitics, money market, geography, weapons systems, what else? 👌 You are a source of inspiration for people to seek knowledge, not just information.
Sir u mentioned that investors will invest when value of india rupee decreases!! So that they will get more rupee in fewer dollar but 1dollar= 63.81>>> 1dollar=63.51 So a foreign investor will be benefitial in 63.81 but why u mentioned 63.51
Let's understand it this way, if the foreigner wants to invest 1000 dollar in any asset in India, he will hold 1000/60.81 = 16.44 rupee worth of indian asset in 1 dollar = 6.81 rupee rate but when the value is less with same amount meaning at 1000 dollar it would be 1000/60.51 = 16.53 rupee worth of indian asset ... So ultimately he is holding more valued asset in indian rupee at the low value of rupee per dollar or more stronger rupee position. That's why he is willing to invest and can turn this investment in greater return in future. Remember 60.81/1(Rupee/USD) is the rate...
There are various factors which lead to fluctuation of rupee's value against the dollar. And this entire video was mainly focused on one factor I.e FDI&Fll. However, the explanation was very precise even though it has covered the single aspect of currency fluctuations.
Nice explaination, But same question amit ji, Import - export things are understood well, but Why will a foreigner invest when rupee appreciates ( at 3:45 ) Please explain, even many of your viewers have asked the same question and not being answered yet. Hope u will reply soon .😊 Thanks
1$=70 or 1$=60, if rupee depreciate only ,foreign will benefit because they will get more rupee, I don't understand why u said foreigner will benefit only rupee appreciate, please reply me sir
@@levintilak738 if they invest, they'll be earning in rupees and if value of rupee is strong against dollar, they'll get more dollar in exchange, as compared to when its value is low.
I didnot understand how FDI would increase as rupee appreciates? Would not they (investors) have to pay more dollars to purchase rupee, making it expensive for them to invest? Please Explain.
If you are a American if you want to invest $10 in india, you will first exchange $10 with Rs500, (assume 1$ = 50 INR) And then want to invest INR500 in Reliance JIO. (Assume that the 1share vale of the company = 100 & you bought 5shares for 500) now the company at at its surplus profits you too got INR 1000 as dividends in subsequent years (now the shares have rised to 1share = INR 500) NOW you want to sell your share and you plan to take back all your investments&profit to your home country in the form of dollar. And now if the indian Rupees has appreciated its value i.e 1$ = 25Rs.. You would get 140$ For 3500INR (1000Dividend +2500Vale of shares sold =3500)(3500÷25= 140$) A huge profit for investing in developing economy. .. For 10 dollars you got 140 dollars..this is only possible if the value of indian Rs appreciates.. YOU must also note that If the Value of Rs is Appriciating and if it becomes equal to US dollar then you will not invest on india You will look into some other developing Country.. that is why India keeps on devaluing its Rupee Value against dollar by importing/investing in some other countries or borrowing loans which would impact on Indias economic growth & by that assuring that the availability of dollar is always less (simple economic law: when supply is less and demand is more then the price/Value of the commodity rises i.e, when the demand for dollar is high& supply is less you need to pay more INR to buy Dollars)it will also repeals/discourage invester to take back their investment whinch indirectly make indian Foreign Investment Stable... And other Advantages of devaluation of rupee aggainst foreign currency are It would directly Discourag domestic buyers from importing foreign commodities (You must pay more rupees for the dollar) For more Pros &cons www.economicshelp.org/blog/1299/economics/advantages-and-disadvantages-of-devaluation/
Rupee appreciates....mean higher interest rate on loans by banks ( people go with less loans and. Thus less money in market and demand raises for rupee and value enhances )....mean higher interest on govt bonds and securities too.....now i ask you ....would you invest if you are going to get more interest?
Basically a bank lend money either to govt for govt bonds and securities or to market people.....now if there is 8 percent interest on govt sec then bank increases interest rate of market loans say 12 percent....and thus this ultimately lead to inflation and hike in rupee demand and thus value.....now foreigners invest in govt securities due to much interest and secure too.
yes mam u r correct .after 1 year i m Commenting on ur comment,because i m studying this subject now only.My doubt gets cleared after reading the same doubts asked by u.
Too much information in one go but is good as you touched almost every aspect of rupee appreciation and depreciation. One has to look multiple numbers of times to understand the minute details.
The reason is foreign investment are of 2 types - FDI(Foreign Direct Investment) and FPI(Foreign Portfolio Investment). He is talking about FPI not FDI. In FPI foreigners invest in stocks, bonds etc. While in FDI they do direct investment in the country.
Basically a bank lend money either to govt for govt bonds and securities or to market people.....now if there is 8 percent interest on govt sec then bank increases interest rate of market loans say 12 percent....and thus this ultimately lead to inflation and hike in rupee demand and thus value.....now foreigners invest in govt securities due to much interest and secure too.
Hello sir..This is KD sharma...this side...I want to ask about the concept at 3:50...why a foreingner will invest when money value is less...if 1 dollar=63.81...he should perchase because he would get more indian rupees ...
Excellent work sir! It helps me in understanding this falling/ depreciation/ appreciation of rupee, Possible goals of demonetization, Trade deficit, RBI's procedure to tackle the increasing demand of the US Dollar, and most importantly role of interest rates in an economy, etc in very easy language. Great lesson indeed! 👌
One of the best explanation I have ever heard sir.... Your way of presentation makes the entire content to get stored in my brain without efforts.... Thank you... Looking forward for more videos..
Hello sir, I have a doubt on how rupee appreciation helps to improve FDI. That means rupee value is less so they have to spend more dollars to get more Indian rupee. Clarify that part.
Basically a bank lend money either to govt for govt bonds and securities or to market people.....now if there is 8 percent interest on govt sec then bank increases interest rate of market loans say 12 percent as more risk to recover money....and thus this ultimately lead to inflation and hike in rupee demand and thus value.....now foreigners invest in govt securities due to much interest and secure too.
After watching this video one can really have crystall clarity as far as appreciation and depriciation of rupees are concerned.Really awsome work sir, a big thumps up.looking forward for some more interesting videos
Here is where I get confused as an investor I want my dollar to give me more of the other currency going back to the example @ minute 3:40 if i have 100$ i want to get 6381 rupee which is better for me than getting 6351 rupee but the example says investor prefers the 6351?
Sir If possible... Please make some videos on Geography in Detail according to UPSC Syllabus mentioned in Optionals like Oceanography, Geomorphology, Climatology, Models & Theories etc.....
Why do foreign investors want rupee to be less in value? When sir said 1$=60.81rs foreign investors would want it to be 60.51..why so ? When 1$= 60.81rs by applying unitary method we see that investors would have to sell 0.0164$ to get 1rs. But when rupee turns 60.51 they will have to pay 0.0165$ for getting 1rs which is more than 0.0164. Why would the investors pay more dollar to get single rs??
Think of it INR as a commodity in a shopping market. Lets assume it to be 10 rupees. Now suppose you know that from 1$ you can buy only 10 rupees. But if rupee appreciates that is somehow it becomes 9.5, you now can have more rupee with that same 1$.
Let's understand it this way, if the foreigner wants to invest 1000 dollar in any asset in India, he will hold 1000/60.81 = 16.44 rupee worth of indian asset in 1 dollar = 6.81 rupee rate but when the value is less with same amount meaning at 1000 dollar it would be 1000/6.51 = 16.53 rupee worth of indian asset ... So ultimately he is holding more valued asset in indian rupee at the low value of rupee per dollar or more stronger rupee position. That's why he is willing to invest and can turn this investment in greater return in future. Remember 6.81/1(Rupee/USD) is the rate...
@@everythingsforyou6555 You mean 1 dollar - rupee 9.5 is more than 1 dollar - rupee 10? If I get 9.5 ml milk for 1 dollar then it is more than if I get 10 ml milk for 1 dollar?? Kuchh bhi
can please any one elaborate why foreign investors prefer rupee appreciating trend to invest in India? or why they prefer buying appreciated rupee in comparison with depreciated rupee, where they could buy more rupees for few dollars?
Think of currency depreciation and appreciation from our nation's point of view. I think currency dep. for us is currency app. for them and vice-versa.
Sir, In the case of contractionary monetary policy, interest rates supposedly increase so that people cannot borrow that easily and investments decline. But now we say that higher interest rates also attract foreign capital. So, contractionary policy increases investments?? I am confused.
![BLACK BAG - Official Trailer [HD] - Only in Theaters March 14](http://i.ytimg.com/vi/Du0Xp8WX_7I/mqdefault.jpg)
The part where I said "GST reduced the money supply in the economy". Actually I meant demonetization and not GST. Apologies for the glitch. If you did catch the mistake, you are on a right track!
Sir please complete 11 class geography ncert remaining chapters soon...
Thank you for the clarification.
Yes I caught 🤗
Yess sir,
That's why I was replaying that GST term in that video again and again.😛😛..
Thank you sir...
But again who are going to investment in #FDI every foreign customer invest in #FII as per government data?....what happened in this situation?
@ 3:50
1$ = 63.81 rupees and 1$ = 63.51 rupees
Foreigner get more rupees per dollar when
1$ = 63.81 and not @ 63.51
Yeah...There is a mistake in that!!!
Exactly
This point confuse and disturb whole.video
Thanks dear....this particular point was distrbng me a lot until I read yr comment
Yup!
It's so amazing that how could one man can explain the concepts Economics, History, Geography and Geopolitics very well and in a very subtle way. Thank you Amit Sir!
Excellent.! I understood more in this 11 minute video than I have for a whole semester in college.
😁😆
The master piece of economics Fundamentals is this Video.Hats off to u Sir
Sir, You work very hard before making any Video....full research...How to present...What mistakes others do that can be corrected....and also taking care of making it interesting not boring.......Amazing Sir...I appreciate...
2:56 Foreign Importers
4:20 We can export more
By the way, I'm so thankful to you🙏🙂👍
You never cease to amaze me. You write about science, technology, geopolitics, money market, geography, weapons systems, what else? 👌 You are a source of inspiration for people to seek knowledge, not just information.
None can teach more effectively than this. Thanks a lot! :) Yes, it was indeed informative :)
Sir u mentioned that investors will invest when value of india rupee decreases!! So that they will get more rupee in fewer dollar but 1dollar= 63.81>>> 1dollar=63.51
So a foreign investor will be benefitial in 63.81 but why u mentioned 63.51
that is also my qustion here
Let's understand it this way, if the foreigner wants to invest 1000 dollar in any asset in India, he will hold 1000/60.81 = 16.44 rupee worth of indian asset in 1 dollar = 6.81 rupee rate but when the value is less
with same amount meaning at 1000 dollar it would be 1000/60.51 = 16.53 rupee worth of indian asset ... So ultimately he is holding more valued asset in indian rupee at the low value of rupee per dollar or more stronger rupee position. That's why he is willing to invest and can turn this investment in greater return in future.
Remember 60.81/1(Rupee/USD) is the rate...
Bro 1000 dollar @ 60.81 ₹/$ will be equivalent to 60810 rupees and not what u said . You need to multiply the ₹/$ rate to number of dollars
There are various factors which lead to fluctuation of rupee's value against the dollar. And this entire video was mainly focused on one factor I.e FDI&Fll. However, the explanation was very precise even though it has covered the single aspect of currency fluctuations.
I'm really grateful to you for explaining it in such a simple and knowledgeable way.
Your videos never disappoint me sir..your teaching skills are incredible😊
Nice explaination,
But same question amit ji,
Import - export things are understood well, but
Why will a foreigner invest when rupee appreciates ( at 3:45 )
Please explain, even many of your viewers have asked the same question and not being answered yet.
Hope u will reply soon .😊
Thanks
1$=70 or 1$=60, if rupee depreciate only ,foreign will benefit because they will get more rupee, I don't understand why u said foreigner will benefit only rupee appreciate, please reply me sir
@@furtherishere7568Exactly
Please waych again
Please watch again
sir there is one more glitch i guess ,or i may be wrong also.please check around 3:45sec to 3:50sec.please let me know
narendra naik, yes you are correct. I should be opposite
@@Asdfghjkl-w3j yes u r right bro
Yes...its the opposite
Also at 5:00 when ruppee appreciates, it will increase foreign investment. How?
@@levintilak738 if they invest, they'll be earning in rupees and if value of rupee is strong against dollar, they'll get more dollar in exchange, as compared to when its value is low.
I didnot understand how FDI would increase as rupee appreciates? Would not they (investors) have to pay more dollars to purchase rupee, making it expensive for them to invest? Please Explain.
Hmm
If you are a American if you want to invest $10 in india,
you will first exchange $10 with Rs500,
(assume 1$ = 50 INR) And then want to invest INR500 in Reliance JIO. (Assume that the 1share vale of the company = 100 & you bought 5shares for 500)
now the company at at its surplus profits you too got INR 1000 as dividends in subsequent years (now the shares have rised to 1share = INR 500) NOW you want to sell your share and you plan to take back all your investments&profit to your home country in the form of dollar. And now if the indian Rupees has appreciated its value i.e 1$ = 25Rs.. You would get 140$ For 3500INR (1000Dividend +2500Vale of shares sold =3500)(3500÷25= 140$) A huge profit for investing in developing economy. ..
For 10 dollars you got 140 dollars..this is only possible if the value of indian Rs appreciates..
YOU must also note that If the Value of Rs is Appriciating and if it becomes equal to US dollar then you will not invest on india You will look into some other developing Country.. that is why India keeps on devaluing its Rupee Value against dollar by importing/investing in some other countries or borrowing loans which would impact on Indias economic growth & by that assuring that the availability of dollar is always less (simple economic law: when supply is less and demand is more then the price/Value of the commodity rises i.e, when the demand for dollar is high& supply is less you need to pay more INR to buy Dollars)it will also repeals/discourage invester to take back their investment whinch indirectly make indian Foreign Investment Stable...
And other Advantages of devaluation of rupee aggainst foreign currency are
It would directly Discourag domestic buyers from importing foreign commodities (You must pay more rupees for the dollar)
For more Pros &cons www.economicshelp.org/blog/1299/economics/advantages-and-disadvantages-of-devaluation/
Rupee appreciates....mean higher interest rate on loans by banks ( people go with less loans and. Thus less money in market and demand raises for rupee and value enhances )....mean higher interest on govt bonds and securities too.....now i ask you ....would you invest if you are going to get more interest?
Basically a bank lend money either to govt for govt bonds and securities or to market people.....now if there is 8 percent interest on govt sec then bank increases interest rate of market loans say 12 percent....and thus this ultimately lead to inflation and hike in rupee demand and thus value.....now foreigners invest in govt securities due to much interest and secure too.
yes mam u r correct .after 1 year i m Commenting on ur comment,because i m studying this subject now only.My doubt gets cleared after reading the same doubts asked by u.
What a voice u have sir!......excellent
Even ur explanation is also lucid....connected soooo many things... Tq for the effort.
Sir I think I never forget in my life,such a beautiful explanation sir
👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏Awesome Awesome nobody can explain in the country like you sir.I can hear your voice for whole day sir.
Nice explanation with Practical details 👌
Thank you so much! This is well explained 😊
Too much information in one go but is good as you touched almost every aspect of rupee appreciation and depreciation. One has to look multiple numbers of times to understand the minute details.
I am addicted to ur videos.. what an excellent teacher u r
This video is master piece
Very informative. Also, very easy to understand since this isn’t my field of study
Your lectures are amazing ,thanks a ton sir, God bless you
Keep on coming with new lectures especially in economics ....
Once again thanks a lot sir
I watch more than 7 time now I am crystal clear
Very Important concept are made clear in simplified and precise way... Thank you so much Sir for another fantastic video🌹🙏
The videos the like before I watch 🙏🙏🙏
Man u make my life easy ❤
3:53 you said that the foreigner would buy $1 = 63.51 while if it buys for $1 = 63.81 then he would be able to spend more
Please reply
The reason is foreign investment are of 2 types - FDI(Foreign Direct Investment) and FPI(Foreign Portfolio Investment). He is talking about FPI not FDI. In FPI foreigners invest in stocks, bonds etc. While in FDI they do direct investment in the country.
Basically a bank lend money either to govt for govt bonds and securities or to market people.....now if there is 8 percent interest on govt sec then bank increases interest rate of market loans say 12 percent....and thus this ultimately lead to inflation and hike in rupee demand and thus value.....now foreigners invest in govt securities due to much interest and secure too.
Hello sir..This is KD sharma...this side...I want to ask about the concept at 3:50...why a foreingner will invest when money value is less...if 1 dollar=63.81...he should perchase because he would get more indian rupees ...
This was highly educative; thanks for the good work
clear as a crystal. Thanks for the video❤️
The best video i have ever seen.. the last 2 minute you did great job.Keep doing more macro economics videos.
Thank you so much sir, For me now it's not a hard trotting hard topic.
I just the love way you explain sir it's amazing very informative..
The content is so satisfactory
Thank you so very much! For explaining this in a such a easy manner.
🌻
Thank you 😢❤
Wow......excellent......now it all makes sense for me ......thanks a lot .....
small doubt at 3:54 fdi comes when rupee appreciates or depriciates? I think it should be depriciated.
Thanks you. You did a great job. 😊😊
thank you very much sir,you're my best teacher that everything you teach is comprehensive and practical
Im so thankful to you🙏
Excellent and Well concluded.. Was difficult and your way of teaching made it so easy
Superb explanation by linking the concept with gst...
Wow man, you did an excellent job,
Thanq ..for clear understanding 🔥
You are awesome man
I was reading this topic just before your video .
Sir..as u said at 3:50..as a foreigner in fewer dollars you are getting more rupees? Wen the rupee value is less? How sir?
very fruitful video, everyone must watch!
Thank you so much for the clear explanation. I have an exam tomorrow and I hope this helps :)
Excellent work sir! It helps me in understanding this falling/ depreciation/ appreciation of rupee, Possible goals of demonetization, Trade deficit, RBI's procedure to tackle the increasing demand of the US Dollar, and most importantly role of interest rates in an economy, etc in very easy language. Great lesson indeed! 👌
Thanks lot .....very helpful .......😊
AMAZING explanation.
Soooo good explanation . Sir can you please, make such videos topic wise for civil service gs prelim, and mains
One of the best explanation I have ever heard sir.... Your way of presentation makes the entire content to get stored in my brain without efforts.... Thank you... Looking forward for more videos..
I came to now that, this is how our Indian economy works now, and the ideas towards FDI is good for short term but will effect in the long run.
Hello sir, I have a doubt on how rupee appreciation helps to improve FDI. That means rupee value is less so they have to spend more dollars to get more Indian rupee. Clarify that part.
Basically a bank lend money either to govt for govt bonds and securities or to market people.....now if there is 8 percent interest on govt sec then bank increases interest rate of market loans say 12 percent as more risk to recover money....and thus this ultimately lead to inflation and hike in rupee demand and thus value.....now foreigners invest in govt securities due to much interest and secure too.
I watched the video just now and have the same confusion. If your doubt is clear by now (your comment is 3 years old) can you please help me out here.
Guys I have the same doubt😂, please help
i have the same and one more
@@artoutpoured
trust me, u are the best
Excellent video! Now my each n every concept regarding effect of exchange is clear. Thanks a lot sir.
Best explanations for upsc and state psc's👌
It was hell informative.. thanks sir
Nice explanation 💓💓💓
After watching this video one can really have crystall clarity as far as appreciation and depriciation of rupees are concerned.Really awsome work sir, a big thumps up.looking forward for some more interesting videos
Here is where I get confused as an investor I want my dollar to give me more of the other currency going back to the example @ minute 3:40 if i have 100$ i want to get 6381 rupee which is better for me than getting 6351 rupee but the example says investor prefers the 6351?
Can someone explain what is happening from @3:20 to @5.35. Thanks
Sir If possible... Please make some videos on Geography in Detail according to UPSC Syllabus mentioned in Optionals like Oceanography, Geomorphology, Climatology, Models & Theories etc.....
Awesome presentation sir.thanku so much sir
Sir how will appreciation improves fdi and fpi
During appreciation they will get less ruppee in exchamge of 1 dollar
Really thank you sir for such an information..
Knowledgeable one❗
Thanku❤
Ultimate explanation... Thanks
Excellent explanation
Thanks a lot
amazing video. thank you for sharing :)
Thank you so much for explaining us clearly.
worth watching 💯✌️
thank sir for your hard work
Very good explanation upload more thank u
very informative video good research and job
You said when currency appreciates, FDI increases
I think it's the opposite.
Can you please confirm.
Why do foreign investors want rupee to be less in value? When sir said 1$=60.81rs foreign investors would want it to be 60.51..why so ? When 1$= 60.81rs by applying unitary method we see that investors would have to sell 0.0164$ to get 1rs. But when rupee turns 60.51 they will have to pay 0.0165$ for getting 1rs which is more than 0.0164. Why would the investors pay more dollar to get single rs??
Same question vro
Think of it INR as a commodity in a shopping market. Lets assume it to be 10 rupees. Now suppose you know that from 1$ you can buy only 10 rupees. But if rupee appreciates that is somehow it becomes 9.5, you now can have more rupee with that same 1$.
Let's understand it this way, if the foreigner wants to invest 1000 dollar in any asset in India, he will hold 1000/60.81 = 16.44 rupee worth of indian asset in 1 dollar = 6.81 rupee rate but when the value is less
with same amount meaning at 1000 dollar it would be 1000/6.51 = 16.53 rupee worth of indian asset ... So ultimately he is holding more valued asset in indian rupee at the low value of rupee per dollar or more stronger rupee position. That's why he is willing to invest and can turn this investment in greater return in future.
Remember 6.81/1(Rupee/USD) is the rate...
@@abdullahayaseshan1000/ 60.81 nahi 1000 x 60.81 = 60810 INR worth asset...why did you divide?
@@everythingsforyou6555 You mean 1 dollar - rupee 9.5 is more than 1 dollar - rupee 10? If I get 9.5 ml milk for 1 dollar then it is more than if I get 10 ml milk for 1 dollar?? Kuchh bhi
can please any one elaborate why foreign investors prefer rupee appreciating trend to invest in India? or why they prefer buying appreciated rupee in comparison with depreciated rupee, where they could buy more rupees for few dollars?
Good day, I was wondering if you could tell me which (drawing/writing) software you are using to make this video.
Great explanation! Keep up the great work!!
Sir please make a video on industrial revolution
Thanks sir
Huge thanks
someone tell the name of the software mr.sengupta using to record the note making on pc
Many thanks sir
Think of currency depreciation and appreciation from our nation's point of view. I think currency dep. for us is currency app. for them and vice-versa.
i really like this keep up the good work!
Beautifully explained!
Your voice is power.
So nice of u sir...
Well done sir , very well explained b 🌹 , though I'm a economics graduated I do find it elaborative 🤭
Can u tell the software all the app which you are using
Sir, In the case of contractionary monetary policy, interest rates supposedly increase so that people cannot borrow that easily and investments decline. But now we say that higher interest rates also attract foreign capital. So, contractionary policy increases investments?? I am confused.