Falling Rupee Weighs on Importers and Foreign Universities Students – The New Indian Express

Express press service

BENGALURU: The falling rupee hurts credibility and slows investment, it boosts inflationary conditions at the macro level and is a burden on portfolios at the micro level. Businessmen complain that it hurts their margins. Shailesh Mehta, who imports medical equipment, said: “The sale price is set with the government due to tenders and lockdown specifications, and we cannot go back on our commitment.

The huge difference is a burden and there is no safety clause. Add the GST and the burden is between 14% and 15%. Mehta, who is also in the paper import business, said paper tariffs have jumped by 40-50%, which is a burden. Export businessman Rajesh Shah said the situation was not rosy for exporters either. “Exporters should be very happy with the depreciation of the Rupee as we receive more Rupees for the same USD price of our products. Ironically, we are also facing problems due to the high costs of imported raw materials, due to which our products are not competitive and our foreign customers do not want to pay higher prices.”

Santosh Neelangatil, whose daughter is studying abroad, says the cost of education is skyrocketing. “It’s a challenge, the sharp drop in the rupee has forced us to rework our finances with a compromise on other investments and domestic spending,” he said, and joked that the rupee is falling the more when her daughter’s semi-annual payment is due. “It affected the import-export trade. The import content of most exporters is around 50%, so due to depreciation the exporter loses,” said FKCCI and Assocham National Executive Committee member J Crasta. “The RBI has already injected $350 billion, but the rupee is losing ground and is a big worry for exporters.”

Economist and former member of the National Finance Commission, Professor Govinda Rao, said that most emerging market economies are facing a sharp depreciation in exchange rates due to the sharp increase in the interest rate of the Fed. Until the Fed stops the bullish cycle, the currencies of most emerging economies, including India, will depreciate, driving up the cost of imports and putting pressure on prices, he said. declared. “Global inflationary forces and petroleum product prices are the main reasons for the fall of the rupee. RBI is taking measures to limit the fall, but these are ineffective as Indian consumption of petroleum products and imports continue to decline. a faster pace. The downfall is inevitable, given our relentless consumerism,” said former ISEC President Prof. RS Deshpande.

This freefall is hurting importers as well as Indian students studying abroad, said Professor Sankarshan Basu of IIM-B. “There is no idea of ​​the floor level of the rupee. This could have serious implications, both in the professional and personal space, since exports and remittances do not necessarily correspond to the decline. It could even lead to huge additional and unforeseen liabilities, causing greater damage to the national economy,” he said.

BENGALURU: The falling rupee hurts credibility and slows investment, it boosts inflationary conditions at the macro level and is a burden on portfolios at the micro level. Businessmen complain that it hurts their margins. Shailesh Mehta, who imports medical equipment, said: “The sale price is set with the government due to tenders and lockdown specifications, and we cannot go back on our commitment. The huge difference is a burden and there is no safety clause. Add the GST and the burden is between 14% and 15%. Mehta, who is also in the paper import business, said paper tariffs have jumped by 40-50%, which is a burden. Export businessman Rajesh Shah said the situation was not rosy for exporters either. “Exporters should be very happy with the depreciation of the Rupee as we receive more Rupees for the same USD price of our products. Ironically, we are also facing problems due to the high costs of imported raw materials, due to which our products are not competitive, and our foreign customers do not want to pay higher prices.” Santosh Neelangatil, whose daughter is studying abroad, says the cost of education is skyrocketing. challenge, the sharp drop in the rupee has forced us to rework our finances with a compromise on other investments and domestic spending,” he said, and joked that the rupee drops the most when the semi-annual payment of his daughter is due.” This has affected the import-export trade. The import content of most exporters is around 50%, so due to depreciation, the exporter is a loser,” said the committee member national executive of the FKCCI and Assocham J Crasta. “The RBI has already injected $350 billion, but the rupee is losing ground and is a big worry for exporters.” Economist and former member of the National Finance Commission, Professor Govinda Rao, said that most emerging market economies are facing a sharp depreciation in exchange rates due to the sharp increase in the interest rate of the Fed. Until the Fed stops the bullish cycle, the currencies of most emerging economies, including India, will depreciate, driving up the cost of imports and putting pressure on prices, he said. declared. “Global inflationary forces and petroleum product prices are the main reasons for the fall of the rupee. RBI is taking measures to limit the fall, but these are ineffective as Indian consumption of petroleum products and imports continue to decline. a faster pace. The downfall is inevitable, given our relentless consumerism,” said former ISEC President, Prof. RS Deshpande. This free fall is hurting importers as well as Indian students studying at abroad, said Professor Sankarshan Basu of IIM-B. “There is no idea of ​​the floor level of the rupee. This could have serious implications, both in the professional and personal space, as exports and remittances do not necessarily correspond to the decline. It could even lead to huge additional and unforeseen liabilities, causing greater damage to the national economy,” he said.

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