Rupee Falls Against The US Dollar: How A Weak Currency Impacts India’s Common And Poor Citizens

The Indian rupee has become Asia’s worst-performing currency and has been in the news for the past week after it crossed the ₹90 per US dollar mark. This means India now needs more than ₹90 to buy one dollar.

While this may sound like a market issue, the truth is simple: a falling rupee directly affects the lives of common and poor people in India. In this article, we explain how and why.

What People and Politicians Are Saying

Some people and politicians argue that:

A weak rupee will increase exports
The falling rupee has no connection with farmers, workers, or common citizens

This argument is only partially correct.

Yes, exports may benefit in the short term. But the bigger picture is disappointing, especially for an import-dependent country like India.

India Is an Import-Dependent Economy

Year	Exports (USD bn)	Imports (USD bn)	Trade Deficit (USD bn)
2021–22	676.53	760.06	-83.53
2022–23	770.18	892.18	-122.00
2023–24	778.13	856.52	-78.39
2024–25	820.93	915.19	-94.26

source: Pib

The data shows that our import is more than our Exports. and the trade deficit shows that how much we are depended on foreign countries.

India imports far more than it exports, especially:

Crude oil and fuel
Cooking gas
Fertilisers
Electronics, machinery, and defence equipment

When the rupee falls, all these imports become expensive. This extra cost finally reaches common people through higher prices.

Strong Currency vs Weak Currency (In Simple Words)

Strong currency: Cheaper imports, stable prices, stronger buying power
Weak currency: Costly imports, inflation, pressure on households

A rupee falling beyond ₹90 is not a sign of economic strength. It usually signals economic stress and rising costs.

Pros and Cons of a Falling Rupee

✅ Pros (Limited Benefits)

Advantage	What It Means
Exports may rise	Indian goods become cheaper for foreign buyers
Remittances increase	Money sent from abroad has higher rupee value
Export companies gain	IT and export firms earn more

Cons (Major Impact)

Disadvantage	What it means
Fuel becomes expensive	Petrol, diesel, and LPG prices rise
Inflation increases	Food, transport, and electricity cost more
Farmers suffer	Fertilisers, diesel, and equipment become costly
Job pressure rises	Companies cut costs, freeze hiring, increase work hours
Household savings fall	Income stays the same while expenses keep rising
Government debt burden rises	Interest payments on international loans increase, reducing money for welfare and development

How Common and Poor People Are Affected

Impact on Daily Essentials

Item	Effect of Weak Rupee
Vegetables & fruits	Transport cost increases
Milk & eggs	Feed and fuel cost rises
Cooking oil	Import cost increases
LPG cylinders	Import-linked prices rise
Medicines	Imported raw materials become costly
Soap, shampoo	Chemical inputs become expensive

For ordinary citizens, a weak rupee means:

Higher fuel prices
Costlier food and daily essentials (due to rise in transportation and fertiliser cost)
Increased gas and electricity bills
No matching rise in salaries
More pressure on jobs for extra working hours and targets

Farmers are hit as fertilisers and diesel become expensive, raising farming costs.

Who Benefits and Who Loses?

Benefited:

Export companies
IT firms earning in dollars
Families receiving remittances

Losers:

Common and poor people
Farmers
Salaried middle class
Small businesses

The Bigger Picture

Saying that a falling rupee helps everyone is misleading. While a few sectors benefit, most Indians lose purchasing power.

When the rupee becomes Asia’s worst-performing currency and crosses ₹90 per dollar, it is a warning sign, not an achievement.

The falling rupee is not just a currency issue — it is a people’s issue. In an import-dependent economy like India, a weak rupee hurts common citizens the most.

A strong economy builds a stable currency, protects purchasing power, and reduces daily hardship.

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