Allowing Rupee to fall further ?

Discussion in 'Economy & Infrastructure' started by I_PLAY_BAD, Sep 8, 2015.

  1. I_PLAY_BAD

    I_PLAY_BAD Regular Member

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    http://m.moneycontrol.com/news/busi...w-rupee-to-fall-for-exports-edge_2964981.html

    http://www.financialexpress.com/art...ave-exports-prevent-china-dumping-sbi/131897/

    Though this will help domestic exporters will it not increase the cost of imports?
    Eg: We import crude oil. If rupee falls crude gets costly which will result in higher fuel prices and increased inflation. Will it not impact the economy on the whole?
    One more drawback is the GDP growth rate will take a hit if inflation increases.
    Economic experts, please pour in your views and thoughts.
     
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