Taking a trip out with your family might be expensive in recent days, be it booking a hotel, food, travel, miscellaneous etc., The fact is that, in India, the condition is better compared to other countries where inflation is the reason for 22% higher thefts in supermarkets!
In the last one decade, the rupee has depreciated by 10% & more is expected due to global crisis. Thanks to Russia – Ukraine war in the recent times (a reason for food inflation globally).
In India, falling rupee is because of WIDENING CURRENT ACCOUNT DEFICIT (high oil prices) and CAPITAL OUTFLOWS (rate hikes by US Federal Reserve – dominance by dollar).
Other factor which makes India vulnerable is the FISCAL DEFICIT which is above 10% of the GDP (a situation that existed during 1991 financial crisis.
Since India is highly concerned with its national interests, it buys cheaper Russian oil at a discounted price (30%) which reduces its import bills which is already depleted by $100bn recently.
“If you can’t explain something simple, you don’t understand it well enough” – Albert Einstein.
Howdy readers!!! With strong belief in the power of words, I look forward to help you choose the correct lens to perceive world issues and embrace positivity about the future!