WORLD FROM MY PERSPECTIVE

INDIA AND BHUTAN RELATIONS: INTRODUCTION: India remains influential over Bhutan’s foreign policy, defence and commerce. India supports Bhutan with about 1/3 rd of its overall foreign aid. Bhutan had been an isolated country in the past but came into pact with British India and developed bilateral relations with it upon its independence. India was the first country to recognize Bhutan's independence in 1947. Bhutan has 90% of its total exports to India and 75% of its total imports from it. The Government of India has taken over from the British Government agreed to guide the Government of Bhutan in its external relations, while undertaking not to interfere in internal administration and paying the state a subsidy. Bhutan mainly receive its income by selling electricity to India through hydroelectric projects.   MAJOR TREATIES BETWEEN INDIA AND BHUTAN: 1949 TREATY OF FRIENDSHIP: The main intention of this treaty was to assure peace and non interference in each othe...

RUPEE DEPRECIATION: INTRODUCTION: If the exchange rate of the Indian rupee to the other currencies especially Dollar decreases, then it can be called a “DEPRECIATION OF AN INDIAN RUPEE.” Example: If you want to get 100 dollars from a bank and it demands Rs.4510, then the value of 1 dollar is equal to Rs.45.10. But after 3 months if you go to the same bank for the same 100 dollars, the amount demanded will not be the same. It may increase or decrease. If the amount demanded increases, then it is said that we are demanded to pay more for the same 100 dollars. That means the rupee value has got depreciated. WHY IS THE VALUE OF RUPEE DECLINING? ·        HIKE IN BALANCE OF PAYMENT: Balance of Payment includes capital account and current account. CURRENT ACCOUNT:  It includes both deficit and surplus. CURRENT ACCOUNT SURPLUS: If the exports lead imports then to achieve a balance, the currency should appreciate. So the surplus current ...