How falling rupee and rising crude oil prices impact you

The rupee has been falling against the dollar since last three months and this will have direct and indirect impact on the personal budgets of all Indians. To add fuel to the fire, the crude oil prices have been rising in the international and domestic markets, causing inflationary pressures in the economy and thereby eroding the value of the rupee further. Since India is a major importer of crude oil, the rise in crude prices has led to a rise in the prices of petrol and diesel, which will result in increase in your cost of travel by road as also rise in the cost of transportation of goods. The higher cost of goods and services will lead to higher inflation, thereby eroding the value of your earnings.

The most impacted will be those who buy foreign goods and avail services in foreign countries. If you are planning to go abroad on a vacation, you will have to pay more for travel, accommodation and for purchase of goods and services in the foreign country. If you are a student planning to go abroad for education or you have already been studying abroad, you will have to shell out more rupees towards tuition fees, examination fees, accommodation, food and clothing due to the fall in the value of the rupee.  Patients who are thinking of going abroad for medical treatment and hospitalisation will have to pay more now towards their cost of treatment.

Even in India, the cost of imported items such as medical equipments, automobile parts and electronic devices will go up due to the fall in the value of rupee against the dollar. So, if you are planning to buy a luxury car or a high-end television set, you will have to pay up more than before as the cost of manufacturing these items will go up due to the higher import cost of the parts and items that go into the manufacture of these goods.