Rupee value causing increase in the costs

By Praveen Edburg | Tuesday, November 04, 2008


While for some industries such as IT industry whose major work is done by outsourcing, the rupee depreciation can be quite encouraging, for other import markets this has turned out to be quite a nightmare.

Earlier when Rupee value appreciated to less than Rs.40 for a dollar, the exact opposite thing happened. IT industries were been affected and the import industry had a good time with the lower prices. The export industry was also seriously affected.

Now with the Rupee value at Rs50 per US dollar, the imported products have increased their costs by almost 20 %. Hence the various electronic items and stuffs that are usually imported have increased in their costs by as much as 15-20 % recently. The export industry and IT and BPO industry should have increased by profit margins by that amount too.






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