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FMCG may not be best bet

A rising rupee may lead to consumption pullback

Devangshu Datta

The rupee's fall has wider consequences than the negative impact on the current account and inflation from expensive crude and gas, and a beneficial impact on exports. In dollar terms, the equivalent of 10 per cent of national income has been wiped out in the calendar year. Calculated in current dollars, India’s Gross Domestic Product (GDP) may contract in 2018-19, assuming its growth runs at the expected 7.5 per cent and the rupee doesn't stage a big recovery. This means Indians will feel poorer, despite booming stock indices, and strong rupee-denominated ...