Domestic economy operating at a slower pace might prevent India’s rupee from recovering current year’s losses against the dollar in 2020. Indian economic growth has slowed down to a six year low of 5.0 per cent in the April-June quarter from an 8.1 per cent in the January-March quarter of 2018.
Subsequent to falling about 9 per cent in 2018, the Indian currency has witnessed a deduction of another 4 per cent this year, making ₹ 72.40 equivalent to a dollar on September 3.
The aftermath of the falling rupee will impact the masses in many ways some of which are mentioned below-
1.Overseas Education – Obtaining foreign education maybe turn difficult as it involves sincere planning and organising of budget in advance, and hence the depreciation of the currency may impact expenses and availability of funds. Falling rupee means students will have to pay more rupees for every dollar. For example- if one spent ₹65 per dollar on an average in 2017, they will now have to pay ₹71.5. This will hike your tuition fees, boarding, food and travel expenses which may in turn lead you to alter your budget.
2.Foreign Travel – If you are a travel freak and are planning a trip abroad, rupee depreciation may create a hindrance in your experience. You will either have to pay more or cut down on few destinations or adjust your shopping list. If the currency continues to fall, selecting a tour destination whose currency is lower than the rupee might be the best option.
3.Fuel Prices – Rupee depreciation results in rise of fuel prices. India imports 80 per cent of its oil requirement and the continued downfall of the value of rupee means that fuel prices are likely to hike even more. This will make your commute and everyday activities expensive.
4.Automobiles and Electronic Appliances – A lot of automobile parts are imported and when the import cost rises, prices for automobiles will rise too. Components of PCs, Laptops, LEDs ,TVs are imported and with the rise in the costs of import these appliances will become expensive.
Image Source – Money Control