Depreciation of Indian Rupee has only negative impact on the economy - Group Discussion
Depreciation of Indian Rupee has only negative impact on the economy
- Due to European financial crisis the value of Rupee has been depreciated which has resulted in an increase in the value of dollar. Thus, affecting the economy.
- The demand of dollar has increased in contrast to that of Rupee and has startled our economy.
- It has resulted in the depreciation of the Purchasing Power Parity (PPP).
- Depreciation of Indian Rupee has resulted in increase in inflation and thus, stagnant growth of the economy.
- Dollar is being appreciated amongst all the currencies including Rupee and has marked an increase in its buyers.
- These frailties and volatilities among the European market is sure to have an impact in the entire Asian markets including India.
- Government would have to pay more in terms of Rupee for its imports. This would lead to rise in fiscal deficit which in turn will raise the level of inflation.
- The exporters gain from the depreciation of Rupee as they get more of the local currency in exchange of the foreign one.
- The depreciating value of Rupee is like a boon to Indian IT sectors as it generates more than 80% of their revenue from overseas market and this will enhance their actual realization of revenue.
- Emigrants living outside India also benefits from this depreciation.
You may like