Story of two devaluations: Finance minister plays King Canute
Devaluation became a dirty word in India in 1966. In June of that year, Indira Gandhi devalued the rupee by a massive 57.4 per cent - and was greeted with a storm of criticism in Parliament and in the media. India had been in desperate need of foreign currency, and the World Bank (which used to coordinate aid from countries, in addition to giving its own loans) had made it clear that nothing would be forthcoming without a substantial rupee devaluation.
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