The recent fall of the Indian Rupee past the ₹90 per US dollar threshold is expected to translate into costlier consumer goods for many Indians. As the rupee weakens, imported items — from electronics, smartphones and laptops to cosmetics, beauty products and automobiles — become more expensive in rupee terms.
Key Highlights
- Rupee breaching 90 increases costs of imported goods, pushing electronics, appliances, and automobiles significantly higher.
- Weak currency fuels inflation, raising prices across essential commodities, daily-use items, fuel, and services nationwide.
For sectors that rely heavily on imported components — such as consumer electronics, home appliances, and automobiles — companies say they will likely hike retail prices by 3 – 7 % starting December–January to offset the higher costs of memory chips, copper, and other dollar-denominated inputs.
This price pressure could wipe out recent benefits that consumers got from reduced tax rates (for example under the Goods and Services Tax) — potentially erasing incentives that had earlier driven a boost in sales.
Beyond electronics and luxury items, the currency depreciation is likely to ripple through essential goods and services as well. Since India imports a large portion of its crude oil and other raw materials, a weak rupee makes energy, fuel, and input‑intensive goods (like edible oils, chemicals, plastics, etc.) more expensive. These increased costs often feed into everyday expenses — from cooking oil and groceries to fuel and transportation — thereby raising overall inflationary pressure.
Even sectors like aviation, automobiles, and capital goods — which depend on imported components or fuel — are likely to be affected. This may also translate into higher operating costs for airlines, increased diesel or petrol prices, and eventually, higher prices for transportation and goods that rely on logistics chains.
Also Read: Prateek: Indian Markets End 2025 Strong, Enter 2026 on Cautious Note
For ordinary consumers — households buying electronics, planning car purchases, or even buying daily-use goods — this could mean a general increase in living costs. Those making purchases of imported or import-dependent items may feel the pinch most.
Finally, the depreciation of the rupee may also affect students, professionals and travellers dealing in foreign currency — for example, people paying for foreign education, overseas travel, or foreign‑denominated expenses will find it costlier in rupee terms.