Rupee Depreciation: Impact on Indian Exporters

New Delhi, Sep 23 (PTI) Indian rupee slipping below the record 88.75 level against the US dollar will help enhance price competitiveness of Indian products in the international markets, but exporters cautioned that fluctuations could pose challenges at import front.

Import-dependent sectors such as gems and jewellery, petroleum and electronics may see lower benefits due to a rise in input costs, they said.

The rupee depreciated 47 paise to hit an all-time low of 88.75 (provisional) against the US dollar on Tuesday, amid sustained outflow of foreign funds on the back of a steep hike in US H-1B visa fee that is expected to give a big blow to Indian IT services exports.

"The depreciation will definitely help exporters in the short run. But we need stability in the value against the USD," Federation of Indian Export Organisations (FIEO) President S C Ralhan said.

Sharing similar views, Mumbai-based exporter and Technocraft Industries Ltd Founder Chairman S K Saraf said this will benefit the country's exports as domestic goods will become little competitive at a time when the US has imposed high tariffs.

"Our hardships will get mitigated to a certain extent. I expect that the rupee will reach 100 per dollar in the next 4-5 months. I think 100 will be the new normal," Saraf said.

Another trader said that the development would make imports of items from crude oil to electronic goods, overseas education and foreign travel costlier.

The primary and immediate impact of a depreciating rupee is on the importers who will have to shell out more for the same quantity and price.

However, it is a boon for the exporters as they receive more rupees in exchange for dollars.

India is 85 per cent dependent on foreign oil to meet its needs for fuels, such as petrol, diesel and jet fuel.

The basket of Indian imports includes crude oil, coal, plastic material, chemicals, electronic goods, vegetable oil, fertiliser, machinery, gold, pearls, precious and semi-precious stones, and iron and steel.

Kanpur-based Growmore International Ltd MD Yadvendra Singh Sachan said that a balanced rupee value helps both exporters and importers.

"Any volatility in the value is not good for both," Sachan said.

The country's merchandise exports rose 6.72 per cent to USD 35.1 billion in August. During April-August 2025-26, exports increased to USD 184.13 billion, while imports rose 2.13 per cent to USD 306.52 billion.