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The Nexus
BUSINESSJul 1 · 02:49 UTCDAWN[email protected] (Zafar Masud)

Cheap currency, costly illusion

The article argues that devaluing the rupee to boost exports is ineffective due to high import dependency in production. Research shows exports respond weakly to exchange rate changes, and 37% of export value relies on imported inputs. Structural issues like energy costs, productivity, and trade facilitation are highlighted as critical factors, contrasting with examples of Vietnam and South Korea's success through diversification and reforms.

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