The rupee has been constantly declining against the US dollar, which has gained strength in overseas markets. On July 29, 2025, the rupee’s fall reached 86.82. So, how does the Indian economy get impacted by a consistent fall in the rupee? Let’s find out! Positive Impacts Benefits to Exporters - Exports made from India become price competitive in international markets amid a fall in value in dollar terms. Increased Remittance Value - NRIs benefit from higher rupee value that they can send back home. Effect on Capital and Investment - Export-oriented industries will likely witness an increased flow of capital and investment with the rupee fall. Negative Impacts Increased Import Costs - Imports become highly expensive owing to a weaker rupee, especially for crude oil. It can widen the trade deficit for India. High Inflation - Import-dependent industries will have to pay more to acquire raw materials and other goods, raising inflation in the market. Investment - A weakening rupee can reduce investment and foreign direct investment (FDI).