What impact can a rising Rupee have on India's economy
Rupee rises 8 paise to 83.37 against U.S. dollar in early trade.
- A rising Rupee can lead to cheaper imports as the purchasing power of the Rupee increases against the US dollar.
- It can help reduce the import bill for essential goods like oil, machinery, and electronics, leading to lower input costs for Indian businesses.
- However, a stronger Rupee can negatively impact export-oriented industries by making Indian products relatively more expensive in the international market.
- This can result in reduced competitiveness of Indian exports, affecting sectors such as textiles, IT services, and pharma.
- A rising Rupee may also lead to a decline in foreign remittances as the conversion rates become less favorable for expatriates.
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10 months ago