UPSC CSE – SYLLABUS – GS – 2- Effect of policies and politics of developed and developing countries on India’s interests, Indian


India as Currency Manipulator – US

The United States has once again included India in its monitoring list of countries with potentially “questionable foreign exchange policies” and “currency manipulation”. This comes a year after India was removed from the watchlist in the US Treasury Department’s semi-annual foreign-exchange report to the US Congress.

Currency manipulator:

Parameters used:

An economy meeting two of the three criteria in the Trade Facilitation and Trade Enforcement Act of 2015 is placed on the Monitoring List.

This includes:


The designation of a country as a currency manipulator does not immediately attract any penalties, but tends to dent the confidence about a country in the global financial markets.

India back in the Monitoring List again:

Source: ” Hindustan Times ”.


What is currency manipulation, and why has US put India on its currency watchlist? Discuss the implications.