Ritika
Rupee Fall Impact on Economy: The Indian currency rupee is showing a tremendous decline and today it has even crossed Rs 81 per dollar against the dollar. Today, the rupee had fallen to Rs 81.20 against the dollar in the early trade today and it is seeing a huge fall of 41 paise compared to yesterday. The rupee has come down to the level of Rs 81.20 per dollar and this has created an atmosphere of concern for currency market experts to importers and traders.
Rupee depreciation has a big impact on the economy
The reason for this is that the fall in the rupee has an impact on the economy in many ways and the Indian economy is also not untouched by it. A weak rupee keeps imports expensive and hurts domestic production and GDP. Know here how the fall of the rupee has a negative effect on the economy to the common man and also disturbs the budget from the country to the household.
Crude oil will get expensive – inflation will increase in the country
India imports more than 80 percent of its crude oil requirement and due to the cost of dollars, it will cost more to buy crude oil because the payment of crude oil goes in dollars. This will increase the prices of petrol and diesel in the domestic market. If petrol and diesel becomes expensive, then there will be a deep impact on the cost of transportation from vegetables to everyday goods and it will affect the cost of all kinds of goods. The biggest impact of the rupee’s weakness is likely to be seen on inflation.
Consumer durables products will be expensive
The falling price of the Indian rupee against the US dollar will make imported parts costlier, which will have a negative impact on the consumer durables industry. This industry heavily depends on imports for critical parts. From TV, Fridge, AC to many regular demand items in which imported parts are used.
The cost of the products of these sectors increases – the fear of the product becoming expensive
With gems and jewellery, the cost of production increases for companies manufacturing petroleum products, automobiles, machinery items. This affects their margins, which if they pass on to the customers, then the products related to these sectors become expensive.
From traveling abroad to treatment will be expensive
Due to the depreciation of the rupee and the dollar becoming expensive, you have to spend more rupees for one dollar. Due to this, it is natural for the expenses of holidays and treatment to increase abroad because you have to spend on all these in dollars. Due to the fall in the rupee, foreign travel will now cost more than before.
Study abroad will be expensive
For every dollar charged by foreign educational institutions as fees, you will have to spend more rupees. This will increase the total cost of your studies much more than expected.
mobile phones are expensive
The biggest impact of the rupee depreciation is most on such goods in which imported parts are used. The item which is most demanded in this category in India is mobile phone. Due to the expensive parts of mobile phones, the cost of the whole process from their manufacturing to assembling increases. Therefore, a jump in their prices is seen.
read this also
Reliance: Reliance New Energy Limited will buy 20 percent stake in US Calc, invest $ 12 million
Stock Market Opening: Beginning on the decline of the market, Sensex lost 114 points to open at 59,005, Nifty below 17600
