Rupee depreciation to help boost Indian farm, textile and jewellery exports

However, the country could lose the currency edge if the monetary units of its competitors also decline, as in the case of Brazil, Indonesia and Turkey

A depreciating rupee is set to improve India’s competitiveness in the world market and thus help boost exports of agricultural products, textiles and gems and jewellery, experts say.

The rupee has depreciated 6 per cent in the first half of the ongoing calendar year to trade at 75.51 a dollar (as of Tuesday), as against 71.38 on January 1. In fact, the rupee had slid to 76.21 on June 16, but recovered following the Reserve Bank of India’s (RBI’s) intervention.

With the Indian economy projected to contract this year, the rupee may slip to even 80 a dollar, according to experts.