As the value of the Indian rupee continues to depreciate against the dollar, imports are immediately affected. Therefore, the price of imported goods will rise.
India’s trade deficit rose to an all-time high of USD 2,563 crore in June last year. Trade deficit is the difference between exports and imports. This leads to additional expenses for electronic goods, crude oil, foreign travel, foreign education etc.
Hence, the cost of Indian students studying abroad is high. Indians traveling abroad for tourism or other reasons are forced to spend extra money while converting money into dollars.
Prices of commodities like fuel, cooking oil, gold will also increase. Also, the cost of spare parts used in cars and mobile phones will increase.
Cotton garments, jewellery, foodstuffs, medicines and leather goods are the major exports from India. As the rupee value of each dollar earned by these exporters continues to increase, the profits for these exporters will increase. This time will be profitable for exporters who contract in dollars and convert to INR.
It is best at this time to sparingly use things that are going up in price….