Ever since the month of December has started. Since then the country has not received any significant news on the economy front. Where the government’s earnings from GST have decreased. On the other hand, a decline has also been seen in the stock market. Now the rupee is also continuously falling, which has crossed 90 for the first time historically. It is also being estimated that further decline in rupee may be seen in the coming days, and the figure may cross the level of 91. Well, there are many disadvantages of falling rupee.
These losses are very much related to the pockets of common people, but on the other hand there are some benefits also. About whom there is very little talk. Indian exports will get a boost due to the rupee falling to a lower level. If Indian goods become cheaper on foreign soil, then both sales and demand will increase. Due to which the country’s economy and India’s credibility in the world market will increase. Apart from this, the country will also get some relief from high tariff.
On the other hand, the IT sector of the country will get a lot of relief from this. The service of Indian IT companies is very good in foreign countries. In such a situation, these companies which are facing the brunt of AI, benefit a lot from the fall in rupee. Due to which the economy of the country also gets strengthened. At the same time, fall in rupee can increase the remittances coming to India. More dollars will come to India and more rupees will also be in the hands of people. Let us also give you detailed information about all these benefits.
Boost to exports, relief from high tariffs
The fall of the rupee will make India’s exports more competitive, which will reduce some of the impact of high US tariffs. The Real Effective Exchange Rate (REER) of the rupee has declined to 97.47 in October 2025 from 107.27 a year ago, indicating that the Indian currency has moved from overvalued to undervalued. This will benefit exports and curb cheap Chinese imports. This is very important to remove the ongoing trade imbalance.
IT and pharma industries benefit
It is a matter of happiness for the IT industry which is facing the brunt of AI. Since a large part of its earnings are in dollars, a fall in the rupee leads to an increase in earnings. This helps them a lot in competing globally. The fall of rupee had earlier also boosted the export of services. Similarly, the pharma sector is a big exporter and can benefit a lot from the fall in rupee.
Remittances may get a boost
The fall in the rupee may encourage NRIs to send money home as the dollar will now yield more value in the Indian currency. The country received the highest ever remittance of $ 135.5 billion in the financial year 2025, which is more than $ 118.7 billion a year ago. These inflows, combined with high service exports, go a long way in reducing the trade deficit.
How much did the rupee break against the dollar?
So far in 2025, the rupee has fallen by more than 5 percent against the dollar. Due to which it has become the worst performing currency of Asia against the dollar. It took only 773 trading sessions for the rupee to fall from $80 to $90. On Wednesday, the currency fell to an intraday low of 90.30 before the central bank eased dollar sales. It closed at 90.20 compared to 89.88 in the previous session.