Petrol Diesel Price: The government is making a lot of efforts to control inflation, but the depreciation of the rupee against the dollar may hamper this effort. Crude oil will become costlier due to the fall in the value of the rupee.
India imports 85 per cent of its crude oil requirement and the depreciating rupee will now make it costlier to pay in dollars. This may also increase the retail price of petrol and diesel in India.
However, there has been no change in the retail prices of petrol and diesel since April 6. Oil companies are facing a pressure to increase the petrol, diesel prices.
On the other hand, children studying abroad will have to spend more money than before for sending education expenses. The rupee has depreciated more than seven per cent against the dollar in the last six months.
Those planning to go abroad will also have to spend more. India imports 60 percent of its edible oil requirement, so due to the weakening of the rupee against the dollar, more rupees will have to be spent for the import of edible oil. This will affect the price of edible oil.
India also imports a lot of manure. Although the government gives subsidy to the farmers on fertilizers, so it will not affect the farmers, but the burden on the government will increase. India also imports various items related to mobile phones and electronics.
Rupee depreciation will impact exports
The depreciating rupee will have a mixed impact on exports. The cost of goods for which raw materials are imported from abroad for export will increase. However, for the export of goods which do not have to import raw materials, the exporters associated with them will get benefit. Small non-hedging exporters benefit from the depreciation of the rupee, as their payments come in dollars and are paid in rupees according to the rate of the day.