HYDERABAD: All hell seems to have broken loose. The rupee looks like it is in a free fall and businesses will have to deal with both the pros and cons of this development. The rupee will make imports a bit more expensive and at the same time, it will also translate to short-term benefits to exporters.
“It is a matter of worry that the rupee has seen a sharp decline. Though we have adequate dollar reserves, there will be extra pressure as they will be paying more for the same quantity on imports,” said DS Rawat, Secretary General, Associated chambers of commerce and industry of India (ASSOCHAM).
Petroleum will be the most affected as it is one of the country’s biggest imports. Although it must be noted that there will no impact in the short term, he added. “The restrictions imposed on Iran by the US from October are an object of concern for us as we are dependent on them for petrol imports. And if there is any hindrance from there, then the rupee would crash even more,” Rawat explained.
Meanwhile, the exports would see a surge in revenue earned across various sectors.