The Indian Rupee, and most current financial systems, were not designed to support international trade on the scale that it occurs today. Formerly most transactions were limited, but with the internet now international trade happens on a daily and personal basis. The only way to prevent fluctuations in individual economic systems as a result would be to move to a global trade system similar to the Euro that would provide more trade stability.
No, the value of the Indian rupee is not declining because of increased purchase of foreign goods because that would mean that protectionism would be correct, and I don't think it is. I think that protectionism is misguided because it does not make sense to say that people must buy from your country to stay in business. People do fine without the protectionism.