Rupee fall: Winners and losers

Depreciation magnifies India's trade deficit woes

The Indian currency has lost around 14 per cent of its value against the US dollar this year.
The Indian currency has lost around 14 per cent of its value against the US dollar this year.PHOTO: REUTERS

Rising import costs and poor export growth send country's current account deficit ballooning

"The rupee is in the intensive care unit." This was a taunt Mr Narendra Modi made in 2013 when campaigning against the Congress-led government at a time when the Indian currency had fallen steeply against the greenback.

Those words have now returned to haunt Prime Minister Modi and his government, with the opposition Congress using them to attack the Bharatiya Janata Party (BJP)-led regime for failing to hold back a free-falling rupee.

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A version of this article appeared in the print edition of The Straits Times on October 18, 2018, with the headline 'Depreciation magnifies India's trade deficit woes'. Print Edition | Subscribe