New Delhi: The Indian rupee touching a record low of 92 against the US dollar is expected to increase the cost of imports, overseas education, and foreign travel, while giving some benefit to exporters.
The sharp fall has raised concerns about inflation and higher spending for households and businesses.
Rupee weakens sharply
The rupee has fallen by over 2 percent this month and nearly 5 percent in 2025 so far, mainly due to strong US dollar demand and continued foreign investor outflows. A weaker rupee means India needs to pay more in rupees to buy the same amount of dollars.
Imports to become more expensive
Imports are likely to be hit the hardest. India depends on imports for around 85 per cent of its crude oil needs. As oil prices are paid in dollars, fuel such as petrol, diesel and jet fuel may become costlier.
Apart from oil, items like electronic goods, mobile phone components, machinery, chemicals, coal, fertilisers, edible oil, gold and silver could also become more expensive, adding pressure on inflation.
Foreign education and travel hit
Students planning to study abroad will feel the impact as foreign education becomes costlier. Fees charged in dollars will now require more rupees.
Similarly, foreign travel will burn a bigger hole in the pocket, as travellers will need more rupees to buy dollars for expenses like hotels, food and shopping overseas.
NRIs benefit on remittances
On the positive side, NRIs sending money to India will benefit, as each dollar remitted will fetch more rupees, increasing the value of remittances received by families back home.
Exporters get some advantage
Exporters stand to gain as a weaker rupee makes Indian goods cheaper in global markets. Sectors with low import dependence, such as textiles, are likely to benefit the most.
However, exporters who rely heavily on imported inputs, like electronics and gems and jewellery, may see limited gains as higher input costs reduce the advantage.
Trade data and concerns
India’s imports rose 8.7 per cent to USD 63.55 billion in December 2025, while the trade deficit widened to USD 25.04 billion. Experts said India needs to balance growth and inflation while reviewing its currency and trade strategy.
