What is its effect?

Question

What will be the position of india if the value of money increases?

Answer 1

Now, let's be clear on what you mean by "the value increases." You mean deflation, not inflation, right? That is, you need less money now to buy what you used to buy, because the money is worth more.

If that happens, it should function as the reverse of inflation. It should bring about great prosperity, as people are able to purchase things they would not have earlier, and therefore more money changes hands, and people generally are working and creating the things (and services) that can be bought for less than they used to be, and because they are working, can afford to buy things, etc. A virtuous circle, not a vicious one.