New DelhiThe political temperature may have increased in Nepal after printing the controversial map on its new currency note, but the big question is what is the real status of Nepalese rupee in the eyes of the world, Drawing borders on currency notes is one thing, but the economic status of a country is determined by the strength of its currency, trade potential and growth, If seen from this perspective, the Indian Rupee is much stronger than the currency of Nepal and the US Dollar is many times ahead of it,
Objections have been raised in India regarding the currency notes on which Nepal has recently printed a new map. But the real picture becomes clear only when we know how much power Nepal’s rupee holds in the market and where it stands in comparison to the economies of India and America.
Nepalese Rupee vs Indian Rupee
According to today’s latest exchange rate, the price of 1 Nepalese Rupee (NPR) is approximately ₹0.625. That means your 100 Nepali rupees becomes only ₹62.5 in India. It is clear from this that the value of Nepali rupee is much weaker than the Indian rupee. India has taken several steps in the last few years to control inflation and maintain a stable economy, while Nepal is continuously dependent on the rupee and its domestic economy remains under pressure due to its small consumer market.
Nepalese Rupee vs US Dollar
The US dollar is the strongest and most used currency in the world and compared to it, the position of the Nepali rupee becomes even weaker. According to today’s rate, 1 dollar is approximately equal to 142.9 NPR. Meaning the value of 1 Nepali Rupee is only around USD 0.0070. This shows how weak Nepal’s currency is in the global market.
How big is Nepal’s economy?
Now talking about Nepal’s economy, the World Bank and international estimates show that Nepal’s total GDP is around USD 40 billion. The biggest contribution in this is from remittance. That is, the citizens of Nepal who work in Gulf countries, India and Europe run the economy in Nepal by sending money. Nepal’s industrial sector is small, exports are limited and there is a high dependence on tourism. As soon as there is a shock, Nepal’s growth comes down rapidly.
india vs nepal
India’s GDP today is believed to be around USD 4 trillion and India is the fastest growing large economy in the world. India’s export sector is strong, service sector is at the global level and the government is continuously providing infrastructure and incentives to increase manufacturing. In comparison, Nepal’s economy is very small and the actual strength of its currency also reflects its size.
Printing maps does not increase prestige
Whatever may be the politics of printing the controversial map on Nepal’s new currency, it does not change the economic situation of Nepal. The prestige of a country is determined by the stability of its currency, employment, production and export capacity. If Nepal wants to strengthen its hold on the international stage, it will have to focus on currency stability and economic diversification.
