Rupee Fall Impact: Due to falling rupee against dollar, it will have a big impact on the common man, know what will happen?
Impact of rupee depreciation on economy: There is a tremendous decline in the Indian currency rupee and today it has crossed Rs 81 against the dollar. Rupee weakens against dollar in early trade today A huge decline of 41 paise is seen in comparison to 81.20 and yesterday. Rupee fell to Rs. 81.20 per dollar and this has created an atmosphere of concern from money market experts to importers and traders.
Rupee depreciation has a big impact on the economy
The reason is that the devaluation of the rupee affects the economy in many ways and the Indian economy is not untouched by it. A weak rupee makes imports more expensive and hurts domestic production and GDP. Know here how the depreciation of the rupee has a negative impact on the economy of the common man.
Crude oil will be expensive – inflation will increase in the country
India imports more than 80 per cent of its crude oil requirement and due to dollar value it will cost more to buy crude oil as crude oil is paid in dollars. This will increase the price of petrol and diesel in the local market. If petrol and diesel becomes costlier, it will affect the cost of transportation of vegetables, goods and it will affect the price of all kinds of goods. A depreciation of the rupee is likely to have the biggest impact on inflation.
Consumer durables products will be expensive
The depreciation of the Indian rupee against the US dollar would make imported parts more expensive, which would have a negative impact on the consumer durables industry. The industry is highly dependent on imports of critical parts. From TV, Fridge, AC to many regular demand items in which imported parts are used.
The prices of the products of these areas increased – the risk of production becoming expensive
The cost of production increases for companies manufacturing gems and jewelery as well as petroleum products, automobiles, machinery items. This affects their margins, which if they pass on to the consumers, the products belonging to these sectors become expensive.
From foreign travel to treatment will be expensive
Due to rupee depreciation and dollar appreciation, you have to spend more rupees for one dollar. Because of this, it is natural for the expenses of holidays and treatment abroad to increase as you have to pay all these expenses in dollars. Due to the fall in the rupee, now foreign travel will 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 devaluation of the rupee falls on the goods used for imported parts. Mobile phones are the most sought after item in this category in India. Expensive components of mobile phones increase the cost of the entire process from manufacturing to assembling. In such a situation, there is a jump in their prices.