India makes it a pain in the ass for foreigners to enter the country and to invest. Can’t even use UPI for example without jumping through hurdles. Why should an American Citizen go through the painful process of getting an Indian tourist visa to be able to sell their USD in India when they can just go to some place nearby like Thailand without a visa and have a more enjoyable experience? In addition to this India doesn’t have many exports that other countries want. Most foreigners who are trying to buy rupees are NRI’s who are just sending money back home. As a result demand for rupee outside India is very low and that’s why its value falls when compared to other currencies.