Rupee Depreciation: A Double-Edged Sword for India's Trade

The Indian rupee's depreciation below the key level of 88.75 against the US dollar has sparked discussions among exporters and industry leaders. While this shift boosts the price competitiveness of Indian goods globally, it also raises concerns about increased costs for import-reliant sectors.

Import-dependent industries such as gems and jewellery, petroleum, and electronics may experience a cost surge as they face higher input expenses. Despite this, exports are witnessing a short-term advantage as domestic goods become more competitive, according to FIEO President S C Ralhan and Technocraft Industries' S K Saraf. The latter foresees the rupee reaching 100 per dollar within months, signaling a potential new normal.

While exporters reap the benefits of a weaker rupee, importers face a dilemma with costlier crude oil, electronics, and foreign services due to currency fluctuations. Experts, including Growmore International's Yadvendra Singh Sachan, emphasize the need for a stable exchange rate to balance the interests of both exporters and importers.

(With inputs from agencies.)