1.

Increase

in

Petrol

and

Diesel

Price:

India is the largest importer of crude oil in the world. With Rupee trading at all time low
oil companies will have to shell out more for importing crude oil. The Petrol and Diesel
prices in India are de-regulated by India government, thus oil companies will put the
burden

of

2.

increased

prices

Increase

on

the

in

common

Gold

man.

prices:

India is one of the largest consumers of the precious metal. The recent slash in gold
prices has eventually resulted in more gold being purchased across the country. As gold
and silver are priced in USD in the international markets the metal would become costly
for

3.

Indian

Increase

Cost

of

buyers.

abroad

travels

and

Education

A good number of students from India go abroad for studies every year. Due to
weakness in Rupee students will have to shell out more for going abroad. Similarly,
tourist from India travelling abroad will have to put a cap on their spending while
travelling.

4.

More

Profits

to

IT

companies

IT firms earn a majority of revenues in dollars from foreign clients. The weakness in
rupee will help the IT companies gain, as they are paid for projects in dollars. Indian IT
behemoth, Infosys get over 75 per cent of its business from North America and Europe,
thus
5.

weak
Loss

currency

would
for

benefit

them.
FIIs

Indian markets largely depend on Foreign Institutional Investor inflows. FIIs holding in
many blue chip stocks is at all time high and they have poured in more than $30 billoin
in past one year. Now if they want to liquidate position and convert back the money in $
they will earn less dollars. Weaker rupee would also affect manufacturing sector that
imports raw material from abroad, as it will be expensive to import these goods now.