Delhi: The value of the Indian rupee against the US dollar has fallen to a record low of 80 rupees. This will have major ramifications in the daily life of every strata of Indian society. Especially the monthly budget of the common people will have a huge impact.
The price of the US dollar continues to rise due to the ongoing crises at the international level including the Corona disaster, Ukraine war, petrol and diesel price hikes. Indian Rupee continues to depreciate against the dollar like the major currencies of the world like Euro, British Pound, Japanese Yen and Chinese Yuan.
India’s revenue deficit has hit an all-time high due to fuel price hikes and foreign investors withdrawing investment, which has had a negative impact on the value of the Indian rupee. Economists have said that the rupee is likely to depreciate further against the dollar as fuel prices are unlikely to drop in the international market.
Depreciation of rupee can affect the life of every Indian citizen. Monthly installments for home and car loans in banks are likely to increase significantly as they will buy reserves and raise the repo rate to prevent inflation.
Petrol, diesel and cooking gas prices will go up in India, which imports about 80% of its petroleum. Prices of daily household items like cooking oil may also increase. Electronics, including cell phones, laptops, and electrical products may also increase.
After the introduction of NEET, studying medicine abroad will become increasingly expensive. Job loss will hit the poor as sectors like real estate, automobile manufacturing, and infrastructure will be hit hard.
The Union government is trying to stop the depreciation of the rupee by doing business with Russia and neighboring countries in rupees instead of dollars and increasing customs duties on gold. Experts say this will only limit but not stop the rupee’s depreciation.