Devaluation of Indian currency has been the most talked and examinedsubject in current economic scenario. India is experiencing a hard time with devaluation of its currency every day. Current economic framework created anxious moments to various industrial sectors in India. On 1st Dec, 2013 the value of Indian rupee stood at 62.44. The experts in the field perceived the situation in different manners. Some considered it as highly depressed and hostile environment; some others considered it as an opportunity in disguise. There are various positive and negative effects which are being predicted by experts in the fields. Devaluation of Indian currency, no doubt it will affect upper and lower sectors of the economy. This enormous decline of rupee value will loss India’s confidence in its growth prospect too. RBI and Government are taking various measures with the objective of making a stabilized floor for Indian rupee. Mr. RaguramRajan, RBI Governor, has shown reflections of hope in the present crisis. Currency of India has devalued by more than 20 per cent since April 2008 and breached its crucial 50-level against the greenback on sustained dollar purchases by foreign banks and stronger dollar overseas. The devaluation of Indian rupee has several consequences which could have mixed effects on Indian economy. This paper tries to explore the causes and impact of rupee depreciation on the Indian economy and also tries to review various measures taken by RBI and Government to get over the present crisis.