Assertion (A) : Devaluation of a currency may promote export. Reason (R) : Price of the country’s products in the international market may fall due to devaluation.

Devaluation makes the domestic currency cheaper in terms of foreign currency, which tends to raise the foreign-currency competitiveness of domestic goods and thus can boost export volumes. Textbook discussion explicitly notes that when the currency weakens (depreciation/devaluation) exports are likely to rise and that governments devalue to make exports cheaper and imports costlier, illustrated with price-exchange examples [2]. Empirical and policy sources also describe that devaluation (or deliberate devaluation) lowers relative export prices abroad and can therefore promote exports by making domestic products more attractive to foreign buyers [3]. The magnitude of the effect depends on demand elasticities and other real-world constraints.

Sources

1. [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 17: India’s Foreign Exchange and Foreign Trade > WHICH EXCHANGE RATE SYSTEM SUITS AN ECONOMY BEST? > p. 495
2. [2] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > Before 1993: > p. 40
3. [3] https://blogs.worldbank.org/en/trade/how-exports-react-to-exchange-rate-fluctuations--and-what-it-mea