Ludhiana, May 4
World MSME Forum has expressed serious concern regarding the continuous depreciation of the Indian Rupee against major global currencies. The report highlights that the weakening rupee is increasing the burden on Indian industries, importers, MSMEs and common consumers. According to the analysis, the decline in rupee value is directly impacting India’s trade balance, foreign reserves, inflation, and industrial competitiveness.
In a statement issued here today, World MSME President Badish Jindal said, “While the Afghanistan currency appreciated 16% against USD, Pakistan currency appreciated 4% to USD, Chinese Yuan appreciated 7% to USD, Malaysian Ringgit appreciated 8% to USD, Euro appreciated 5% to USD, Singapore currency appreciated 2.4% and Canadian currency appreciated 2% to USD. The devaluation of the rupee has significantly increased the cost of imported raw materials, machinery, crude oil, electronic goods, chemicals, and industrial inputs.”
Jindal further said that since India heavily depends on imports of crude oil and several industrial products, every fall in the rupee increases production costs for industries, adding, “MSMEs are the worst affected because they already operate on limited margins and face challenges such as high interest rates, expensive power, and rising logistics costs.”
World MSME Forum stated that the falling rupee also contributes to inflation in the economy. Higher import bills increase fuel prices, transportation costs, and prices of essential commodities. This reduces the purchasing power of consumers and slows down demand in domestic markets. A weaker rupee also increases the repayment burden of foreign loans taken by Indian companies and the government.
“Although a weaker rupee can provide temporary support to exports, Indian exporters are unable to fully benefit due to rising import costs of raw materials and global competition. The Forum emphasized that India must focus on strengthening domestic manufacturing, reducing import dependency, promoting renewable energy, and increasing exports with value addition,” said Jindal.
Jindal further suggested that the Government of India should introduce long-term policies to stabilize the rupee through export promotion, reduction in trade deficit, increased industrial production, and attracting foreign investment into manufacturing sectors. Special incentives should be provided to MSMEs to improve technology, productivity, and competitiveness.
Jindal also stated that a strong rupee reflects a strong economy and industrial base. He emphasized that India’s economic policies should focus on production-led growth rather than excessive dependence on imports. The Forum urged policymakers to protect MSMEs and industries from the adverse effects of rupee depreciation and global economic uncertainty.
