Depreciation of rupee will hit middle-class people..!!

The indian rupee continues to depreciate against the US dollar and other major currencies. As a result, the indian economy and the people of the country may suffer severely. India's middle class is particularly vulnerable. One of the main reasons for the depreciation of the rupee is the declining demand for the rupee in the international market and the large appreciation of the dollar against the basket of most traded currencies globally. Especially the dollar-rupee and dirham-rupee exchange rates seem to be more affected.
The fall in rupee value has many consequences. When the rupee depreciates, the price of imported goods rises, leading to a rise in inflation. This severely affects the purchasing power of indian consumers. At the same time, the middle-class and lower-income groups are suffering more from the rise in prices due to the depreciation of the rupee, as their incomes have not kept pace with inflation. Where will the rupee stand in five years? Considering current economic trends, further depreciation can be predicted. India's persistent trade deficit and slow GDP growth rate add to these concerns.
Today's value of the indian Rupee against the US Dollar is Rs 84.38. If this trend continues, the value of the indian rupee against the US dollar may rise to Rs 105 in the next 5 years. The main reason for this is inflation. advertisement Several large indian companies, despite their domestic dominance, are still struggling to make significant inroads into the global export market. As a result foreign income to india is very low. As a result, india is increasingly dependent on foreign institutional investors (FIIs) and foreign capital for dollar reserves. Meanwhile, India's imports are more than its exports, thus forcing foreign expenditure to meet the needs of the country's people. As the dollar appreciates, the growth of the indian economy slows down, which is bound to hit the middle class, which has become a huge headache.
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depreciation of rupee

Sowmiya Sriram

13/11/2024 07:50 PM