EXCHANGE RATE VOLATILITY AND MACROECONOMIC LINKAGES IN INDIA: A DESCRIPTIVE ANALYSIS (2010-2024)

The study of exchange rate volatility has become increasingly significant in the twenty-first century as economies integrate more deeply into the global financial system. India, with its rising share in world trade and investment flows, has experienced both opportunities and vulnerabilities associated with fluctuating currency values. This chapter presents a descriptive exploration of the patterns of exchange rate volatility in India from 2010 to 2024 and examines its broader macroeconomic linkages. Drawing on secondary data from the Reserve Bank of India, International Monetary Fund, and Ministry of Commerce, the chapter highlights how exchange rate fluctuations intersect with inflation, trade balance, foreign capital flows, and monetary policy responses. The analysis demonstrates that exchange rate movements not only influence external competitiveness but also affect domestic price stability and growth dynamics. By tracing these linkages over time, the chapter underscores the importance of data-driven policymaking for managing volatility in a globalised era. The descriptive approach offers clarity without reliance on complex econometric modelling, thereby providing an accessible yet rigorous contribution to understanding India’s evolving macroeconomic landscape. Keywords: Exchange Rate Volatility, Macroeconomic Linkages, India, Foreign Trade, Descriptive Analysis.