The World MSME Forum has expressed concern regarding the continuous depreciation of the rupee against major global currencies. It maintained that the weakening rupee is increasing the burden on Indian industries, importers, MSMEs and common consumers. According to the analysis, the decline in the rupee value is directly impacting India’s trade balance, foreign reserves, inflation and industrial competitiveness.
Badish Jindal, president of the forum, said the devaluation of the rupee had significantly increased the cost of imported raw materials, machinery, crude oil, electronic goods, chemicals and industrial inputs. Since the country heavily depends on imports of crude oil and industrial products, every fall in the rupee
increases production costs for the industries.
MSMEs are the worst affected as they already operate on limited margins and face challenges such as high interest rates, expensive power and rising logistic costs.
The forum said the falling rupee also contributes to inflation in the economy.
It emphasised that the nation must focus on strengthening domestic manufacturing, reducing import dependency, promoting renewable energy and increasing exports with value addition. It further suggested that the Central Government should introduce long-term policies to stabilise the rupee through export promotion, reduction in trade deficit, increased industrial production and attracting foreign investment into manufacturing sectors.
