India’s import bill could increase by about $15 billion due to the fall in the value of the Indian rupee against the US dollar. Think tank GTRI said this on Thursday. According to PTI news, the Global Trade Research Initiative (GTRI) said the Indian rupee (INR) has depreciated by 2.34 per cent against the US dollar, rising from Rs 83.25 to Rs 85.20 compared to December last year. Whereas the Chinese Yuan has weakened by 0.06 percent.
Weak rupee will affect gold imports
According to the news, this fall in the value of rupee will negatively affect the import of gold. Gold prices have increased by 27 percent from $ 2,066.26 an ounce to $ 2,617 in December 2023. It will become $11 per ounce in December 2024. India’s oil imports, which are mostly priced in dollars, could have become costlier due to the rupee’s depreciation, however, the impact has been mitigated by a 5 per cent decline in Brent crude prices, which could hit $77 per barrel in December 2023. From barrel to 73 dollars per barrel.
trade balance worsened
GTRI founder Ajay Srivastava said India’s total import bill will increase by about $15 billion due to the impact of rupee depreciation. The biggest impact of rupee depreciation will be on India’s imports of industrial goods worth $100 billion from China. He said as both the rupee and yuan have weakened against the US dollar, the double devaluation has increased the cost of these imports, further worsening the trade balance.
