1I/c. Director, B. V. Patel Inst. of BMC & IT, Uka Tarsadia University, Bardoli, Gujarat, Email: vijay.gondaliya@utu.ac.in/Mob. 9377435333
2Professor, Dept. Busi. & Ind. Mgmt., VNSGU, Surat, E-mail: jaydipchaudhari@gmail.com, Mob. 9825046720
Online published on 15 February, 2019.
India is one of the emergent nations in the globe. It is fundamental things for growing economy is maintained the growth of international trade and stability of forex rate. To improve export-import i.e. international trade it is required to have industrial growth (IIP) and other side exchange rate have significant impact with country risk i.e. inflation rate (here we have used WPI as a inflation) to maintain growth of IIP and stability in WPI. With respect to above we try to analyses the impact of WPI and IIP on exchange rate and international trade. To analyze the objective we have used monthly data from April 2012 to November 2017 of WPI, IIP, Export, Import, USD, SDR, Pound sterling and Euro. The result indicates that WPI and IIP have significant impact on Exchange rate and international trade. It has also observed with the help of Granger Causality IIP and WPI is the cause of Export and Import in India.
International trade, exchange rate, WPI, IIP, causality
