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Studious Menace

- • 4m

Rupee has been falling tremendously recently. I know that foreign preassure and the tariffs are a reason for that but keeping aside the problems. Couldn't this be disastererous for India in the long run. Sadly, I rarely see people talking about thi

Nihar V

Manufacturing is the... • 4m

Can you tell me why will it be disastrous for India?

1 Reply

Replies (1)

Studious Menace

- • 4m

Well, I will give you a short explanation. Depreciation of Rupee makes all the imported goods more expensive. So, the prizes of stuff like Crude Oil, and many minerals, like Lithium for example increase. Now, the one who suffer will be the poor ones, as this can cause rise in prize of everyday items like fuel and electronic devices (as most of them use lithium or are imported anyways.) This is called inflation which in itself is pretty bad for a country, and this can also cause recession (slowing down of economic growth) if the central bank increases interest rates to combat it.

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