The paper explores the exchange rate (USD/INR) pass‐through and the wholesale price index in India. Exchange rate pass‐through (ERPT) has a stimulated effect on the wholesale prices over the period of time. We use flexible least square approach to estimate time varying approach of ERPT and wholesale price, monthly data for the period from April 1994 to May 2019, find exchange rate over the period of time as well as change the wholesale price. It implies that the ERPT provides heterogeneity information that change the whole price index, even both export/import goods and services play a vital role in fluctuating on exchange rate and also change whole price in the domestic market.
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Vadivel et al. (2020) studied this question.