The depreciating rupee and the slowing down of the economy are causing all-round concern. In this background, the Federation of Andhra Pradesh Chambers of Commerce and Industry and the Indian Institute of Economics are jointly organising an interactive session on “Failing Economy and Falling Rupee” on Friday.
The idea is to discuss the implications and formulate a strategy to arrest the rupee depreciation and its impact on economy, says a release from the chambers.
V. Bhaskar, Principal Secretary to Government (Finance), Government of Andhra Pradesh, S. Thirumalai, Senior Advisor, Deloitte Touche Tohmatsu India Pvt Ltd, P. Srikanth Reddy, Chairman and Managing Director, Four Soft Ltd, S.K. Rao, Director-General, Administrative Staff College of India, and B. Shankar , Senior Advisor-Tax & Regulatory Services, Ernst & Young Pvt. Ltd, will give their views.
The depreciating rupee will add further pressure on the overall domestic inflation, the chambers said.
Since India is structurally an import-intensive country, as reflected in the high and persistent current account deficits, domestic costs will also rise on account of rupee depreciation which will, in turn, translate into increased inflation.
The rupee depreciation will particularly hit the industrial sector and put more pressure on their costs as items such as oil, imported coal, metals and minerals, imported industrial intermediate products are getting affected and the cost of debt servicing will also go up, it said.
somasekhar.m@thehindu.co.in