The Indian Rupee (INR) serves as the official currency of India, a vast and varied nation situated in South Asia. The term "rupee" is derived from "rupiah," which translates to silver coin in Sanskrit. The rupee is among the oldest currencies in existence, with its origins dating back to the 6th century BC, although the current name was adopted in the 16th century. The Reserve Bank of India (RBI) is tasked with the issuance and management of the Indian Rupee.

The Indian Rupee functions under a managed floating exchange rate system, where its value in relation to other currencies is influenced by market dynamics, including supply and demand. The Reserve Bank of India may intervene in the foreign exchange market when necessary to ensure stability or to prevent excessive fluctuations. This system enables the Indian Rupee to adapt to external shocks and shifts in global market conditions while maintaining a degree of stability.

The Indian Rupee is divided into 100 smaller units known as paise. Coins are available in denominations of 1, 2, 5, and 10 Rupees, as well as 50 paise. Banknotes can be found in denominations of 5, 10, 20, 50, 100, 200, 500, and 2,000 Rupees.

Until World War I, the rupee was pegged to the British pound and maintained parity with the U.S. dollar. The British pound was on the gold standard, and as the gold-silver ratio widened, the colonial government's expenses to settle debts with England necessitated larger remittances of the rupee, resulting in increased taxes and heightened risks of social unrest.

In 1960, following a period of rising trade deficits in India, the RBI devalued the rupee, marking the beginning of a continuous decline in its value. By 1969, one rupee was equivalent to 13 pence; in 1979, it was 6 pence, and by 1989, it had dropped to 3 pence per rupee. In 1991, while still pegged to a basket of currencies from its main trading partners, an economic crisis brought the country close to default.

In 1996, India faced high inflation and budget deficits, prompting another devaluation of the rupee. During the early 2000s, the rupee stabilized at an exchange rate between 44 to 48 rupees per dollar. However, the Great Financial Crisis led to significant withdrawals by foreign investors from emerging markets, forcing the Indian government to implement currency controls to prevent further depreciation of the rupee.

India's economy is diverse, encompassing a blend of agriculture, manufacturing, and services sectors. Agriculture, especially the cultivation of grains, fruits, and livestock, plays a vital role and provides employment for a large segment of the population. The manufacturing sector, which includes textiles, chemicals, and engineering goods, is also essential to the economy. Meanwhile, the services sector, particularly information technology (IT) services and outsourcing, has seen rapid growth in recent years, significantly contributing to India's economic development and global competitiveness.

Despite its diversity, India faces numerous economic challenges, including high poverty and inequality levels, a substantial informal sector, inadequate infrastructure, and slow progress in implementing economic reforms. The Indian government is actively pursuing policies aimed at fostering economic growth, attracting foreign investment, enhancing infrastructure, and addressing social issues such as income inequality and unemployment.

In conclusion, the Indian Rupee is the official currency of India, managed by the Reserve Bank of India. Its ISO code is INR, and its symbol is (₹). The currency operates under a managed floating exchange rate system, with its value shaped by market forces and potential interventions from the Bank. The Indian Rupee is subdivided into paise and is available in various banknote and coin denominations. India's economy is characterized by a mix of agriculture, manufacturing, and services sectors, yet the country grapples with challenges related to poverty, inequality, inadequate infrastructure, and slow progress in economic reforms.