Gain from depreciation

With reference to Ajit K Ghose’s column, “The pros and cons of RBI rate cut” (July 3), while a hike in interest rates and its impact on rupee value and domestic demand are questions that need to be debated, a depreciating rupee could have positive effects on the economy. It could boost exports and thus promote manufacturing.

Costlier imports could protect domestic industries, especially small and medium enterprises, which have been facing tough competition from cheap imports.

In the service sector, segments such as information technology (IT) and IT-enabled services, tourism including medical tourism, and the hospitality sector could gain from a