How much was 1 USD to INR in 1947?
Note: Our community members have asked us many questions similar to this post, like what was the value of 1 USD to INR in 1990, What was the value of 1 USD to INR under Indira Gandhi reign, How did the USD to INR change during Narendra Modi Government. We have populated all the answers in a new post with the following title for you
This is a popular outrage these days on Social Media that how the Indian rupee was equal to 1 US dollar on 15th, August 1947. Unfortunately, it is not correct. Exchanging 1 USD to INR in 1947 would not have got you 1 Rupee exactly. In 1947 when India got its independence, there were no outside borrowings on the balance sheet of India thus the value of India Rupee was at parity with US Dollar. Since India was under British rule Rupee was pegged to Pounds. From 1927 to 1966, it was 13 rupees = 1 pound. This arrangement continued until 1966 when the rupee was devalued and pegged to the U.S. dollar at a rate of 7.5 rupees = 1 dollar. This value lasted until the U.S. dollar devalued in 1971.
So what was 1 USD to INR in 1947 exactly worth?
At independence, the Indian rupee was pegged to the British pound at a rate of 1 rupee = 1 shilling and 6 pence or 13 1/3 rupees per British pound. The British pound would have been worth about 4 USD at that point in time – thus the U.S. Dollar would have been worth more than 3 rupees.
Indian Rupee- A Brief History
The word rupee comes from rupiya or “rūpaa”, a Sanskrit word which means silver coin or wrought silver. The rupee was first issued by Sultan Sher Shah Suri in the 16th century. And later continued by the Mughal Empire, Maratha era as well as in British India. Even though the history of the Rupee traces back to the Ancient India who n 6th century BC were the earliest issuers of coins in the world along with the Chinese wen and Lydian staters. Bank of Hindostan (1770–1832), the General Bank of Bengal and Bihar (1773–75, established by Warren Hastings), and the Bengal Bank (1784–91) issued the earliest versions of paper rupees in the Indian subcontinent.
Rupee Value During British Rule
During much of the 19th century, the Indian rupee was a silver-based currency. Most of the strong economies were on the gold standard and this had a negative effect on the standard value of the currency. The rupee was subdivided into 16 annas when the British were ruling India and also during the first 10 years of independence. Each anna was subdivided into either 4 paisas or 12 pies. So one rupee was equal to 16 annas, 64 paises of 192 pies. In 1957, decimalisation occurred and the rupee was divided into 100 naye paise (Hindi/Urdu for new paisas). After a few years, the initial “naye” was dropped.
The Indian rupee was the official currency of several areas which were governed or controlled by the British from India. These areas included East Africa, Southern Arabia, and the Persian Gulf. The Indian rupee was the official currency for a major part of the early and mid 2oth century.
Note: Some of the information has been collated from here
You are now just a few steps away to get the best and the live exchange rate. Call us on 9212219191 or visit our website for further details.