The Indian currency is witnessing an incessant slide against the dollar and has in fact depreciated by approximately 18 percent in the last four months. Export oriented industries such as information technology, gems and jewellery, and textiles can cheer the depreciation in rupee. For several large pharmaceutical companies, the depreciation in rupee will shore up earnings and revenues as half of their revenues come from global markets. However, consumers are likely to feel the pinch; higher cost of imported inputs across a swathe of products will cause an increase in their end prices, especially in the case of fuels. Premium packaged food products, olive oil, gourmet cheese, high-end furniture, consumer durables and apparel and the likes that are imported, would cost more. The depreciating rupee is likely to increase the cost of fast-moving consumer goods products such as soaps, shampoos, detergents and deodorants, which contain chemicals that are by-products of crude oil.

On a positive note, the sharp depreciation in rupee can of course make India more attractive to foreign tourists.