India is on ‘sale’
July 7, 2022 Leave a comment
The Indian Rupee has lost 25% of its value against the U.S. Dollar over the past 3 years.
While Indian assets may be considered to be ‘on sale’ in U.S. Dollar terms, the 50 years of continued weakness in the Indian Rupee certainly makes Indian exports (including services) much more competitive……
It does hurt the country when needing to pay for goods in USD, Euro or in Russian Rubles when it comes to buying oil.
The upside is that it does provide ‘bang for one’s buck’ when remitting monies back to India especially when its U.S. Dollars.
In fact, annual foreign remittances into India accounts for at least 3% of annual GDP being approximately $87 billion worth.
However, the stronger U.S. Dollar (and inversely the weaker Rupee) also tempts more Indian talent and labour to leave its shores as they chase higher earning and purchasing power.
Unfortunately, I don’t have any view or suggestions how to change this trend.
July 7, 2022
by Rob Zdravevski
rob@karriasset.com.au
rob zdravevski's blog 