Please help me..
Dear Student,
The Indian Rupees plunges to low of the Rupees 74.48 against US dollars . This means that value of Indian Rupees is Depreciated against the US Dollar. So, it will have the impact on Imports of India from the US in the Following ways :
The Indian Rupees plunges to low of the Rupees 74.48 against US dollars . This means that value of Indian Rupees is Depreciated against the US Dollar. So, it will have the impact on Imports of India from the US in the Following ways :
- Depreciation of Indian Rupees means more Rupees are requires to exchange for 1 US dollar or 1 US Dollar can buy more and more of Goods in exchange of rupees than before.
- As, Indians have to pay greater amount of money to trade with US dollar than before , this will decrease the Imports of goods and services from the US market to India. For ex. Before the depreciation of Rupees , Rs.60 = 1 US$ is used to buy 10 apples but now Rs74 is required to buy 10 apples as $1 = Rs 74
- Indian Imports will decrease and also price of the imported goods increases they became expensive .
- When import decreases it also effect the net export they will increase (export - import).