Indian Rupee Continuously Falling Against US Dollar
Since the Russia-Ukraine war started on February 24th, the Indian rupee has fallen 26 times against the dollar, and it is now $1 = 80 rupees. It is definitely not a good sign for the economy of the country. Since the war started, the crude oil prices have been continuously hiking and the rupee has been losing its value against the dollar. These circumstances are going to muster several challenges to the country. Considering the current scenario where the country is already going through a painful economic time, if the rupee doesn’t recover, it will work as a driver of inflation.
Possible Outcomes: Due to the continuous falling of rupees, the entire country will have to suffer. The first problematic thing is the price hike of crude oil. Since India is a big importer of oil and the entire transport system depends on petrol and diesel, the cost of basic things will also increase. The government has already included food items for the first-ever time in the GST list. It has increased the price of necessary things that every common citizen of this country consumes. Now if the petrol & diesel prices continue to go up, it will break the backbone of the taxpayer class.
On the other hand, import rates will be higher and export will be cheaper. Those who earn in dollars will be benefitted. For example, YouTubers, streamers, and people working for foreign clients. Due to the higher value of the dollar, the amount they will get will be higher in India.
The Reserve Bank of India has suggested that in the coming 5 years, the Indian rupee can fall up to 100 INR against the dollar. Thus, it is clear that the situation is not going to be revoked soon. It will require an enormous number of efforts and powerful strategies. Else, we will be heading towards a recession.
If we exclude the two major victims, the Covid-19 pandemic and the Russia-Ukraine war, the government policies have also played a major role in slowing down the economy. Demonetization and GST shook the entire nation and it never recovered. From that time onwards, the economy has been falling down. However, other currencies like the UK dollar, Yen, and Russian Ruble, all have fallen. But it is a dangerous sign not only for common citizens of India, evocating foreign exchange reserves will create huge problems for the entire nation on international levels.
It is time when the Indian government takes some necessary steps to revoke the economy and the citizens participate actively in the process with patience.
