If you look at the money supplies for the countries in question it's clear they've all been expanding considerably faster than the EU/US $ currencies. India for example has been running at over 10% for the last few years:

http://www.rbi.org.in/scripts/Data_MSupply.aspx

Now economic "growth" is measured through prices. Prices are a function of the money supply. If the money supply is growing, GDP aka "growth" will also increase quickly, but it is purely an artifact of changes in the size of the underlying unit of monetary measurement. It's not a measure of growth in a sense that we would use it outside of economics. Indeed, we actually can't deduce that much from the GDP measurement about actual production at all, and we certainly can't deduce 'growth' as it's customarily used in Economics.

I think it's easy enough to see that if one currency, the US dollar for example, is expanding quantitatively at an annual rate of 7% while the Rupee is expanding at 10-15%, then an adjustment in the exchange rate is going to have to occur. The really interesting question - and I've never seen a good answer to this - is why these adjustments occur over a relatively short period as they frequently seem to, rather than just occurring gradually over time.

The depth of the crisis btw. will depend on the quantity of bad loans in the Indian banking system that are exposed and/or created by the crisis.

Very well said Jacky Mallett. But is it always 'bad loans' as in case of US? In a recent interview to a national channel the former finance minister of India said, the current government of India was not cautious with its fiscal policies (and impending crisis) when they spent huge sum on welfare schemes and triggered higher purchasing power couple of years back.

When inflation is relatively high in India in the past, the rupee did not steeply depreciate to the extent which is currently being the case, even though the inflation is relatively lower now. Second, why the other currencies are also depreciating w.r.t. US$ over the period? Will it snowball into a major global crisis, as BRICS is an engine of growth for the whole world. Is there any role for the US in this regard?

The Indian Rupee hardly regained its strength in the past. Germany's currency story might be different. Won't you agree? If you do, would you see any crisis looming large on BRICS.

I think the major impact is on the policies of the government. Sometimes the government does not take steps to correct it immediately and think over time it will fall in place which is the worst attitude. Secondly the brick countries major imports like oil which is at an all time high also increases the payout. These are my views only.

Read the report http://www.bloomberg.com/news/2013-09-17/what-happens-when-the-u-s-isn-t-the-biggest-gas-guzzler-.html it says that BRIC countries together consume more of oil and gasoline per day than US, once US alone contributed highest consumption of oil in the world. And now BRIC consume more than that of US. Read report you will be able to understand why currencies of BRIC nations are depreciating considerably.

One cannot just take the U.S. currency as a standard. If there is no inflation within India then its monetary expansion may be within reason (I haven't studied India particularly, just saying generally this is possible). On the other hand, U.S. currency is presently in a deflationary mode. So one should at least investigate the possibility that the rupee is more or less sitting still and the dollar is appreciating. Since it is a mutual float, this can be hard to tell. But if I go by prices in the U.S., I see important segments like energy falling continuously in spite of the recovery. Everyone agrees the recovery is not robust. The Fed might be pumping money into the economy, but the Tea Party in Congress has effectively taken money off the table, for example by the sequester and the shutdown. Federal employees might have gotten paid, but the small businesses that depended on activity at government installations and parks did not do much business during the shutdown.

Another thing you may want to look at is the balance of productivity between the two nations. Productivity is intimately connected to interest rates and inflation/deflation. We used to hear Alan Greenspan talk about this all the time but it was a relatively new concept and I think people were unsure if it was real. I have quantified the relation of productivity to interest and inflation is a (rather long, sorry) paper which you may find on my profile. https://www.researchgate.net/publication/258255561_Mechanism_for_extended_inversion_in_the_equity_premium?ev=prf_pub

The U.S. productivity, after stalling in the early 2000s, has been rising aggressively since the housing crisis, as businesses increase capacity without hiring back workers, by automating more or by hiring them as temps at lower wages with less benefits. This is highly deflationary. I haven't looked at India's productivity, but by comparing the two, you should be able to gain a different angle on the relative currency movement. In fact the productivity changes are what enable monetary expansions (or contractions) to proceed over long periods without disruptive local inflation or deflation.

Robert, the Indian currency is more sensitive to US tapering policy. I understand tapering would lure away hot money from Indian market. The question lies here - is the fundamental value of the currency would simply vanish away vis-a-vis speculative value. Because, recently there is a possibility (rumor?) of US tapering and Indian currency has depreciated by around 3% in a single day.

That's very interesting, Debasis, thanks for the insight. I am much opposed to Fed tapering unless productivity changes or inflation appears, but of course I have no say in the matter . . . However, I just completed a book deriving the reason for this. Maybe I'll send a copy to Janet Yellin. :)

Normally depreciation has positive effect for manufacturers inside country, which are not dependent on import components. This also includes major export oriented manufacturers (e.g.: oil and gas).

As you know first step Russia took after triple effects (US/EU sanctions, reunification with Crimea and longterm drop in oil price) is a depreciation of ruble to the level where federal budget returned to surplus again. This maneuver allowed to stabilize the economy.

Too bad Janet Yellen doesn't understand that.  Maybe she does, but feels that as the first woman Fed chair, she has to "appear strong" and raise interest rates.

 There's really very little to compare between the Russian and the US monetary systems at the moment Robert. One is a result of corrupt lending and out of control monetary expansion, and the other is the consequence of loan securitization and 30 year fixed rate interest loans. The Federal Reserve will raise interest rates when economic theory based on variable rate loans in a trading economy, based on the gold standard says they should. It is probably more appropriate to target your ire on the incorrect theories, rather than the sex of the individuals concerned.

Who said anything about ire?  According my my two books on this subject, which have nothing to do with anybody's sex, and nothing to do with Russia, the U.S. has built up many decades of deficient expansion of the money supply.  The language used by the Fed regarding "normal" rates suggests either ignorance or the need to appear tough.  I was trying to be optimistic and choose the one that would correct itself in shortest order.

The books are:

The Equity Premium Puzzle, Intrinsic Growth & Monetary Policy

Money, Wealth & War

I'm offering a signed paperback to those willing to purchase the ebook ($2.99 and $4.99) and post a review by the end of June.  Both are available on Amazon, and also my crash rate theory book which might interest you.