The rupee has shrunk too and is now quoted around 46 to the dollar, against 43 a year ago. And the Reserve Bank itself has conceded that there is a great shortage of dollars and has asked all exporters to bring their money home, at least most of it. Remember that foreign reserves are down too, by as much as three billion dollars. This is the basic weakness of the Indian economy - it is not generating enough foreign exchange. This has always been its main weakness and the reforms have done nothing to improve the situation.
Net result is slowdown in GDP growth rate, and the crash of the rupee.
As an economy expands, it needs foreign exchange for imports, for growth means imports of capital goods and other requirements. In the past, we borrowed money right and left from World Bank and other international agencies, but since what you borrow has to be paid for ultimately, you have to step up your exports. Since this could not be done, we ran into payment crisis from time to time until the sotiatopm necame unbearable and the entire scenario had to be re-worked. This is where reforms came in. Instead of borrowing money from World Bank and other agencies, we opened up the economy to foreign direct investment, where it is the foreign investor who takes the risk, not the country.