Rupee falling in front of dollar, will have a bad effect on the pockets of common people

In the last few days, there is also concern that India’s foreign exchange reserves are also depleting continuously and due to the ongoing decline for several weeks, it has reached below $ 600 billion.

Targeting the government, Congress leader Rahul Gandhi tweeted, “Modi ji when the rupee fell, you used to criticize Manmohan ji. Now the rupee is at its lowest ever. But I will not criticize you blindly. “The falling rupee is good for exports provided we support exporters with capital and help create jobs. Focus on managing our economy, not the media headlines.”

Modi ji, you used to criticise Manmohan ji when ₹ fell.

Now ₹ is at its lowest ever value. But I won't criticise you blindly.

A falling ₹ is good for exports provided we support exporters with capital and help create jobs.

Focus on managing our economy, not media headlines.

— Rahul Gandhi (@RahulGandhi) May 9, 2022

Congress spokesperson Randeep Singh Surjewala said in a tweet, “Today in the history of India – Rupee is in ICU, – when has crossed the age of Margdarshak Mandal, – NPA is highest in 75 years, – Unemployment is highest, – Inflation has broken its back, – the most expensive is petrol and diesel, Modi hai to mumkin hai.”

भारत के इतिहास में आज

– रूपया ICU में है,

– ₹ मार्गदर्शक मंडल की उम्र कब की पार कर चुका,

– – NPA 75 साल में सबसे ज़्यादा है,

– सर्वाधिक बेरोज़गारी है,

– महंगाई की मार ने कमर तोड़ दी है,

– सर्वाधिक महँगा पेट्रोल और डीज़ल है,

मोदी है तो मुमकिन है । pic.twitter.com/BdI11xOhGr

— Randeep Singh Surjewala (@rssurjewala) May 9, 2022

Before the 2014 Lok Sabha elections, Prime Minister Narendra Modi had repeatedly criticized the Manmohan Singh-led UPA government for the country’s economy. After the steep fall in the rupee on Monday, the Congress also tweeted an old video in which Modi is seen criticizing the central government for the fall in the rupee.

How did the rupee fall?
Globally, a rally in the US dollar is believed to be a major reason for the rupee’s fall following the US Federal Reserve’s 50-basis-point rate hike last week and indications of more rate hikes in the coming months.

Along with this, the pulling of foreign investors from the Indian market is also being considered as one of the many reasons for the fall of the rupee.

It is also being said that the tightening of monetary policy in the major countries of the world, economic slowdown and geopolitical tensions caused by the Russo-Ukraine war are also increasing the concern among investors and this may be one of the reasons for the fall in the rupee. could.

He says, “As soon as there is panic in the international financial markets, people rush to the dollar and the demand for dollars increases. That too has an effect. Some foreign institutional investors disinvested from India, due to which the stock market fell. And because of this a lot of money went out.”

Professor Munish Kumar believes that the fall of rupee is a temporary thing and it will stabilize in the coming days. “India has enough foreign exchange reserves because of the inflow of FDI,” he says.

What are the meanings?
The biggest effect of falling rupee is that imports become more expensive and exports become cheaper. This is because it takes more rupees to pay the same quantity of imports and fewer dollars to the buyer to pay the same quantity of exports.

So the depreciation of the rupee has a greater impact on those importers who are badly affected by the increase in the value of rupee per dollar. However, the fall of rupee proves to be positive for exporters as they get more rupee against dollar.

India imports about 80 percent of its total oil. As the rupee depreciates, the import bill of crude oil will increase and due to this the prices of both petrol and diesel will increase. This will have a direct impact on the cost of transportation and due to increase in the prices of goods, inflation is likely to increase.

Professor Munish Kumar says, “The big problem for the common man is about oil. The price of petrol has already gone up in dollar terms. This will have the biggest impact on the common man.”

Inflation was already being feared due to the rising oil prices for the last few weeks. Now since India will have to import oil more expensive, the big concern is that the prices of petrol and diesel will go up, which will have a direct impact on the cost of transportation of essential commodities and inflation will increase further.

The depreciating rupee will have a direct impact on those students who are planning to go abroad for studies. The weakening of the rupee against the dollar will make it more expensive for Indian students to study abroad.

Rupee fall is a win-win for exporters as they will get a higher amount by converting foreign exchange payments into Indian Rupees. It is believed that due to the fall in rupee, the earnings of IT and pharma companies will increase.

Rupee fall, what are the reasons?
Economic affairs expert and former JNU professor, Professor Arun Kumar, believes that the main reason for the fall in the rupee is that the Indian economy is very weak at this time.

He says, “After the Kovid epidemic, America’s economy had become very strong. To say that India’s economy is recovering but it has still not reached the level of 2019 and that is because of the growth in India’s economy.” The demand is low and the government is not paying attention to it.The government says that the growth rate is good and India is the fastest growing economy, but because the data of the unorganized sector is not included in it, the growth rate is not as per the government’s claim. . That’s why consumption demand is low. Unless there is demand, the growth rate cannot be good.”

According to Professor Arun Kumar, inflation is increasing very fast, but the figures of inflation are also not completely accurate because the service sector is not fully reflected in it. He says, “As medical expenses and education related expenses have increased a lot but they are not fully reflected in the inflation figures. All this has had an impact on the purchasing power of the people and consumption has come down. The industry will not revive until consumption is low. Since capacity utilization is low, investment is low and when investment is low, the growth rate is low.”

Professor Arun Kumar also talks about uncertainty around the world. “There has been a supply disruption because of the pandemic and the ongoing war in Ukraine. It’s creating chaos all over the world. When there are times of uncertainty, people look for safe havens and save the dollar,” he says. Considered a safe haven.” They say that prices have gone up all over the world and world trade has been disturbed and India’s current account deficit has increased greatly.

He says, “Foreign investors are going out of the country and India’s foreign exchange reserves have fallen a lot. The demand for the dollar has increased and the demand for the rupee has decreased. This creates fear that now the rupee will fall. Such Speculation and uncertainty make the situation worse.”