Business Standard

Surge in import cost may negate positive impact of rupee fall: Experts

According to an analysis done by FIEO, the rupee has depreciated by 8.1 per cent till September 7, 2022 since the same point last year

Exports
Premium

Exporters of products that are not dependent on imported raw material can gain if the domestic currency continues to fall versus dollars

Shreya Nandi New Delhi
The rupee dropping to a record low against the dollar may be a mixed bag as far as exports are considered because the gains from the fall of the domestic currency are expected to be limited, experts and industry officials said.

If rupee’s depreciation continues, Indian exporters stand to gain. However, the gain would have been much more if the Indian economy was less import-dependent, experts said. This means that exporters of products that are not dependent on imported raw material can gain if the domestic currency continues to fall versus dollars.

On the other hand, higher input costs can

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Sep 22 2022 | 9:15 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com