Rupee depreciation to make durables, cars costly
The sliding down of rupee which has depreciated by nearly 8% against the U.S. dollar during the last one-and-a-half months may make home appliances and cars dearer as the fall in rupee value has put pressure on costs of companies, forcing them to consider increasing the price of their products.
As per experts, the hike in prices may not be good as the consumer sentiment is already low due to factors such as slowdown in the economy and high interest rates.
The decline of rupee has resulted into the higher import costs for companies which buy many spare parts and services from foreign markets. This import cost is putting upward pressure on the overall cost of various products like cars, electronic devices etc.
However, the depreciation in rupee may be good news for the $100 billion domestic IT-ITeS sector, which has been facing strong headwinds due to an uncertain global economy. It may be beneficial as Indian IT industry is majorly export based.
Categories: Economy & Banking Current Affairs