CONSEQUENCES OF RUPEE DEGRADATION

1. INVESTMENTS: Profits of companies with high foreign currency debt and imported inputs may fall, resulting loss to all stakeholders.

2. IMPORTED ITEMS: Fuel and other key imports become costlier and it will lead to high prices i.e. inflation.

3. FOREIGN TRAVEL: Travelling abroad may become expensive and it is bad news for tour operators or travel agencies.

4. EDUCATION ABROAD: Students will have to spend more on tuition and stay. This will increase loan burden.

These are the few consequences of rupee degradation according to common people.

Views and comments regarding more consequences are welcome.

Advertisements

3 thoughts on “CONSEQUENCES OF RUPEE DEGRADATION

  1. The software companies or companies having substantial export turnover would benefit and become more competitive in overseas markets. Their profitability would improve. Selectively picking up some of these stocks while the stock markets are down would prove to be financially rewarding. Investment in gold at declines may also be good. Prof. Anil Mendhi

    Like

What is your opinion?

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s