Estimating the comparative value of INR decades ago vs Now.

Recently I read news about the demise of Mr Rakesh Jhunjhunwala; he was considered as Warren Buffet of India because of his skills & fortune in the stock market. At the time of his death, he had an estimated net worth of $3.8 billion. Then I read another article, “How did Rakesh Jhunjhunwala make his billions?”. This article mentions that Mr Rakesh Jhunjumwala started with 5000 rupees in 1985.

The next thought which crossed my mind was that 5000 INR is 62.5USD in the current market price. So I should invest more seriously in the market maybe I can make a fortune like him. But I was aware of basic economics because of a book I read, Day to Day Economics, so I knew the value of 5000 inr in 1985 must be more than 5000 in 2022.

I wanted to know how much I have to invest today if I have to match the investment of Mr Jhunjhunwala in 1985.

I searched for an inflation calculator tool that could tell me about the historical inflation in India so we could calculate then. I found inflationtool there. I entered the USD value of INR, i.e. 62.5 USD. But again, I realised I must check exchange rates to find the conversion value based on 1985. So I searched for historical conversion values and found the Wikipedia page.

In 1985 the avg value of USD/INR conversion was 1/12.2349. Then i divided 5000/12.2349 = 416.7 i approximated that value to 417 so that I could get the USD value for inflationtool. When I entered the value in the tool, it showed 5,866.05. So at the current price, 5866$ is equal to 467596.91.

In short, my dream of becoming a big bull is shattered until I earn more, as 5000 INR in 1985 is equivalent to 467596.91 INR in 2022.

I think I should write a program to automate this calculation process (if i am correct in my concept). I hope I will try to do this as an explorable explanation. If you don’t know what explorable explanations are, you can read about them on this blog and here is a page with many of them.