Dear friends,

I am Jyoti from India and im here going to participate in this SEC -15/ Week-4 contest :https://steemit.com/hive-170554/@steem4bangladesh/sec-s15w5-foreign-exchange organised by Steem For Bangladesh community

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Foreign Exchange

Name 3 major ways your country earns foreign exchange. Briefly explain how each method works.

The appreciation of currency during trade between neighboring countries is called 'Foreign Exchange'. The valuation of this foreign exchange is changing every day. It is not stable. The value will rise as per the daily world trade. or landing.

Every country in the world is paying more attention to increasing foreign exchange reserves. Why other countries weigh the economic strength of a country with this.
Foreign exchange reserves have reached a new high in Indian history.

According to the CEA, India’s foreign trade has “boomed” due to reforms that happened over the past few decades. Not only has its share increased in world exports, but a jump has been seen in the share of the country’s gross domestic product from around 15 per cent in the early 1990s to almost 50 per cent in 2022.

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Three of the most important of Foriegn Exchanges are

• The invested foreign currency held by our banks.
• Foreign remittances from exports,
• Foreign remittances received from workers abroad.

Foreign Investment

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In India, foreign investors invest in our country is the major . India is the largest country in terms of area as well as the most populous country, so foreigners invite more and manufacture their products in India, especially companies like Samsung, LG, Hyndai, Kia, Suzuki, Honda, Pepsi, Google, Amazon, Wall Mart, Microsoft, Apple, HP, Epson, Canon, Sony have invited more in India, and thus they also get income, while India gets more foreign exchange.

EXPORTS

Foreign exchange to India by exporting manufactured goods in India. Comes in very large quantities. Especially since India is an agricultural country, there is a very high demand for the grains produced here in the world. Especially rice, wheat, small grains, vegetables, fruits, cotton, tobacco, tea etc. are mostly exported. Apart from this, motor vehicles are manufactured in India. Vehicles manufactured by India's domestic companies such as TVS Motors, Mahendra Motors, Tata Motors and companies like Maruti Auto and Bajaj Automobiles are world class and exported to many countries.

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Also, India is leading in IT and software sector and by exporting them, India gets more income. Software produced by Indian IT companies like HCL, TCS, Infosys, Wipro, etc. is very famous in the world and they have users all over the world.

Our india is also the major manufacture of cloths and major exporters of readymade garments and raw cloth materials such as Cotton, Silk, Rayon, Zute and Polyerter.

Foreign Remittances

The plus point of our country is that India is the leading country in terms of population. Our country's youth and workers are working in all countries of the world and bringing foreign remittances to India. Similarly, skilled workers in India are working abroad and earning foreign exchange while sitting at home. IT companies abroad hire Indian workers and pay them to work from home. As a result, more foreign investment is coming into India.

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Which sector contributes the most to your country's foreign exchange earnings? Why?

Foreign remittances to India come in many forms, but most foreign remittances come into India through foreign investment in India. Because India has suitable infrastructural resources, human resources, technical facilities etc. easily available, so foreigners show more interest to invest in India.

Next to this, more foreign exchange is coming to India through exports. India is the largest agricultural country. Grains and agricultural products produced here are exported more from India. Similarly, automobiles and spare parts manufactured in India and missionaries are also exported more. Through them, more foreign exchange is coming to India.

Does your country's foreign reserves depend on this particular sector or are there many other sectors as alternatives?

Our country is not dependent on any foreign investment. Because income is coming to India in many ways. Foreign exchange flows into India through many channels apart from the three channels I have mentioned above, however foreign exchange from the above three categories is retained in India to offset imports into India.

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India is expected to become the third-largest economy in the world with a GDP of $5 trillion in the next three years and touch $7 trillion by 2030 on the back of continued reforms, the Finance Ministry said on January 29.Ten years ago, India was the 10th largest economy in the world, with a GDP of $1.9 trillion at current market prices.Today, it is the 5th largest with a GDP of $3.7 trillion (estimate FY24), despite the pandemic and despite inheriting an economy with macro imbalances and a broken financial sector, said the ministry's January 2024 review of the economy.

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What kind of problems do you think your country will face If this sector somehow collapses?

Due to the policy of globalization many foreigners have invested in India. Through it many products are produced in India.

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Although foreign exchange is coming to India through this, a lot of damage is also happening inside India. For example,

• Mineral resources and natural resources are being exploited.
• Pollution is increasing in India.
• Industrial waste and garbage are accumulating in the country.
• Natural resources like river and lake forests in India are being destroyed.
• Traditional language , dress and culture of India is affected.
• Water pollution and air pollution are creating health problems for the people of India.

I would like to invite

@radleking

@kuzboy

@sumayaorin to participate in this useful contest and win.

💚THANK YOU 💚

Discord : @jyoti-thelight#6650 Telegram :- https://telegram.org/dl