Vol. 7, Issue 1, Part N (2025)

The study is based on a qualitative analysis of how currency derivatives influence economic development in India. Currency derivatives such as forwards, futures, options, and swaps enable economic agents to manage exchange rate risks. The study also explores how these financial instruments affect macroeconomic stability, trade growth, capital inflows, and industrial performance. The development of India's currency derivatives market has contributed significantly for improving financial efficiency, trade competitiveness, and investment confidence, while also posing certain regulatory and speculative challenges.