From cooking to driving… fall in rupee will hit inflation, know what are its disadvantages?

Weak Rupee Disadvantages: On Wednesday, the Indian rupee crossed Rs 90 against the US dollar, which is its lowest level ever. The rupee falling below the level of 90.13 against the dollar means that now you will have to spend 90 rupees and 13 paise to buy one dollar.

Of course, its effect will be seen in our and your everyday life because it will make imports expensive, which will increase the prices of many things. Apart from this, this shock can also cause turmoil in the stock market, you will have to spend more on studies abroad etc. Let us see who will gain and lose from this huge fall in the rupee:-

What will become expensive?

• As already mentioned, imports become expensive due to falling rupee. This is because dollars are used for transactions in international trade. This means that things imported from other countries have to be paid for in dollars. In such a situation, when the value of rupee falls, we will have to pay more for one dollar than before. When things are purchased at a higher price, they will also be sold at a higher price in the market, which will affect your pocket.
• India buys more than 85 percent of its crude oil and more than 60 percent of its edible oil from other countries. Due to weakening of rupee, the government will have to spend more on their imports. In such a situation, they will become more expensive. This will also increase the cost of those industries which are dependent on crude oil and the products made from it. Therefore, cooking oil, LPG and petrol will become expensive, which will cause more problems to low and middle income families.
• Even though smartphones, laptops, ACs, fridges are produced on a large scale in India, many parts are used in them which are imported from outside. Due to weak rupee, their prices will also increase, due to which the overall product will become expensive.
• Due to the fall in the rupee, education abroad will become expensive because the cost of education will remain the same, but due to the weakening of the rupee, one will have to spend more in buying dollars. Earlier, the annual tuition fee of $50,000 at the rate of Rs 80 per dollar was Rs 40 lakh in Indian currency, but now it has become Rs 45 lakh. That means a direct increase of Rs 5 lakh. This amount is equal to several months’ salary for many middle class families. Due to weakness in rupee, education loan will also become expensive. Now that the rupee has crossed the previous figure (one dollar is equal to Rs 80), students will also have to pay 12-13 percent more EMI.
• From electric vehicles to luxury cars, it will also be affected because their production is less at the local level and even if it is produced, many parts will be imported from abroad. If their imports become expensive, the products sold will also become expensive.
• The prices of gold and silver are also likely to increase because India buys gold on a large scale from countries like Switzerland, UAE, South Africa, Guinea and Peru. Similarly, India imports silver from countries like China, Hong Kong, Russia and Britain. Due to the expensive rupee, their import will also become expensive, in such a situation gold and silver jewelery will become more expensive.

Why did the rupee fall?

There are many reasons for this decline in rupee. One of these is the uncertainty regarding the trade agreement between America and India. Talks on trade deal between India and America have been stuck for a long time. This has affected the rupee. On top of this, America has also imposed 50 percent tariff on Indian exports, which has badly affected the currency.

Despite strong GDP growth, foreign investors are turning away from Indian markets and are withdrawing their money from here and investing it elsewhere. In the year 2025, foreign investors have so far withdrawn more than 17 billion dollars from the Indian markets, due to which the pressure on the rupee has increased. Changes in RBI policy are also having an impact on this. The International Monetary Fund has reclassified India’s exchange rate system from ‘stabilized’ to ‘crawl-like’. This shows that RBI is now guiding the rupee, not guarding it.

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