Why Indian coins keep changing shape #indiancurrency #facts #economics

Ever wondered why Indian coins are getting smaller and why coins like ₹10 and ₹20 were introduced?

In this video, we explain the economics behind Indian coins and how metal prices, manufacturing costs, face value and coin composition influence the coins we use every day.

Historically, coins derived part of their value from the metal they were made from. But when metal prices increase, the government has to ensure that the metallic value of a coin remains below its face value. Otherwise, a ₹5 coin could theoretically contain metal worth more than ₹5, creating an incentive to melt it down and sell the metal.

This is also connected to why very low-denomination coins such as 10 paise, 20 paise and 25 paise eventually disappeared from circulation. Their production became increasingly uneconomical compared with their face value.

On the other hand, higher-denomination coins like ₹10 and ₹20 allow manufacturing costs and metal value to represent a smaller proportion of the coin's face value.

So why are Indian coins getting smaller? What determines the size and composition of a coin? And why did India move away from some low-value denominations?

• Why Indian coins are getting smaller • Why ₹10 and ₹20 coins were introduced • Metal value vs face value of coins • Indian coin manufacturing cost • Why low-denomination coins disappeared • 10 paise, 20 paise and 25 paise coins • ₹1, ₹2 and ₹5 Indian coins • ₹10 and ₹20 coins • Coin composition and metal prices • Economics of coin production • Indian currency explained • How inflation affects coins • Why governments change coin designs and composition

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Join Harsh Bhosale as we explore the fascinating world of Indian coins and uncover the reason behind their decreasing size. From the historical context to the economic factors, we'll delve into the story of how Indian coins have evolved over time. Whether you're a numismatist, a history enthusiast, or simply curious about the changing face of currency, this video is for you. Discover the intriguing tale of Indian coins getting smaller and the rationale behind this transformation. Get ready to learn something new and exciting about the coins in your pocket.