The Rupee’s Downward Spiral Against The Dollar by Jayakhosh Chidambaran https://madrascourier.com/opinion/the-rupees-downward-spiral-against-the-dollar/ 7-3-2023
While there is a general perception and a convoluted argument that a weakening Rupee is advantageous for exports.. Historically, India has been a net importer economy. Therefore the current account is always in deficit.
Rupee depreciation could engender positive gains for certain sectors of the economy like IT, pharmaceuticals, garments, tea and steel. At the same time, it will adversely impact oil and gas, renewable energy, automobile, FMCG, consumer electronics, cement, telecom services and aviation.
The government should revive the “Make in India” program or, as a preliminary step to gain traction, envisage and plan for “Make for India” that will generate jobs, revive domestic demand, create wealth, and improve national income and GDP per capita. ..India’s economic recovery is K shaped. The rich are getting richer, the poor are getting poorer, large companies are becoming larger, and small companies are becoming smaller, leading to inequitable and haphazard growth.
To reverse this trend – and to have an inclusive decadal growth of 7 per cent to 8 per cent year-on-year