Rupee Depreciation: A Boon or Bane?

Finance Secretary R S Gujral said the depreciation of the Indian currency will ultimately help exporters in the long run. "The depreciation of Rupee prima-facie would help exporters in terms of higher realization in terms of rupee... overall in the long term it would help the exporters”, he adds.

In the fuss between all the contradiction it has been hard to foresee that will the depreciation in the value of rupee will actually be helpful for the Indian economy.

Affect of Currency Decline:

For Investment sector profits of companies with towering foreign currency debt and imported inputs may drop down. Imported items like fuel etc may become costlier and foreign travelling expenses will increase along with education cost in abroad. Loan burdens may boost up.

Positive Aspects:

Positive aspects may count few things like more money will be received by people like IT professionals on converting dollar into rupee. Gold and International fund investors could gain profit. Export concentrated companies may have high revenues and travel and tourism may increase in India helping local industry to shoot up.

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