I feel that the recent fall of the Indian rupee to an all-time low against the US dollar, though may seem highly profitable to our exporters, is actually a worrying sign for the economy. While a weaker rupee makes Indian products cheaper on the global market, the broader picture is far more complicated than it appears.

No doubt exporters stand to gain from more competitive pricing, but a significant portion of our exporters, particularly in sectors like electronics, chemicals, and engineering goods, depend heavily on imported raw materials and components.

With the rupee’s slide, these imports are becoming costlier, and actually eating into the profit margins of Indian manufacturers, which they have to pass on. So, while exporters may earn more in rupees, their overall costs too have risen considerably thus neutralizing any gains they might have made. This is a critical issue that cannot be ignored.