What Happened to the Exchange Rate?

In 1966, the rupee was pegged at 4.76 per dollar; in real terms it was probably about 10 to the dollar. The devaluation of that rate and other liberalizing reforms were highly unpopular with India's people. In 1971, after a series of events including the war with Pakistan, things began to change again for the better. But before you know it, trade policies had become tighter than ever.