This research paper provides a comprehensive analysis of exchange rate regimes (ExRRs) and their implications for economic policies particularly for the Indian economy. The study investigates the relationship between different ExRRs, including fixed, floating, and managed float systems, and their impact on macroeconomic policies which are drivers of economic growth. We have recognised four different regimes for the Indian rupee on the basis of level of flexibility of the exchange rate. In India, before liberalisation, fixed exchange rate system was followed but after economic liberalisation of early 1990s, the Reserve Bank of India (RBI) started intervening in the currency market to regulate the exchange rate. The exchange rate was made comparatively more flexible since the global financial crisis of 2008. After 2013,the exchange rate was efficiently and regularly managed by adopting the currency market intervention methhod. The RBI has acted in an asymmetric manner to reply to the EMP. When there was pressure to appreciate, the RBI acted by buying the foreign exchange reserves whereas rupee depreciation was adopted in case of vice-versa. The present study discusses the broader implications of ExRRs and economic policies for global economic governance, financial market stability, trade and investment flows, policy innovation, and public perception. It provides valuable insights for policymakers, central banks (CBs), financial institutions, and researchers, informing policy formulation processes in the dynamic global economic landscape.

JEL Classification: E58, F31