26 SEP,2022 | MEDC
The rupee hit a fresh low against the USD at 80.86 this week. However, at least as far as fiscal slippage goes, alarm bells need not start ringing. Despite the depreciating rupee, India is not likely to face a ballooning subsidy bill, as there has been a discernible fall in oil prices (where India is concerned). With the ongoing Ukraine crisis, India has been purchasing oil from Russia at discounted rates, and its beneficial effects will nowbecome visible. Much also depends on whether policypermitsthe reduced fuel prices to be passed onto consumers and to what extent. If the depreciation continues, our exporters stand to gain. But the gain (for India as a whole) would have been larger if our economy were to be less import-dependent. Atmanirbhar Bharat needs to be realized at the earliest.