Impact of Exchange Rate Fluctuations on India’s Manufacturing Exports: An Empirical Investigation on Long-Run Relation

After the collapse of fixed exchange rate system Bretton Woods, fluctuations and its impact on macroeconomic performance trade in countries around world are becoming an increasing debate among researchers policymakers. This study empirically investigates whether real may affect exports Indian context. The has employed autoregressive distributed lag (ARDL) bound test procedure to analyse long-run relationship variables using quarterly data from 2005Q1 2017Q4. results ARDL reveal that cointegrated with relative prices, volatility GDP. found negative but insignificant exports, GDP as a proxy foreign economic activity effective prices have positive statistically significant manufacturing exports. Further, short-run error correction model implies while temporarily deviate equilibrium, deviations adjust towards equilibrium level long run. JEL Codes: F01, F31, F14