Rupee depreciation yields limited benefits for exporters: Experts
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While a weaker rupee typically boosts export competitiveness by making Indian goods cheaper in global markets, certain factors are limiting potential gains.
They said many exporters rely heavily on imported raw materials, and the increased cost of imports due to the falling rupee offsets much of the advantage.
«As a result, despite the rupee's decline, exporters are finding it difficult to capitalise on the currency movement,» international trade expert Biswajit Dhar said.
The domestic currency has depreciated over 4 per cent since the level of 83.19 on January 1 last year.
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