New Delhi, Dec. 15 -- The recent depreciation of the Indian rupee has reignited debate on whether a weaker currency genuinely enhances India's export competitiveness.
A new report by Systematix Research says that currency depreciation delivers uneven outcomes across sectors and, in many cases, worsens the trade balance rather than improving it
According to the report, sectors such as electronics, chemicals, machinery and petroleum products do see an apparent export benefit from a weaker rupee. However, this advantage is significantly diluted due to their heavy dependence on imported inputs.
The study noted, "Currency depreciation is positive for exports of electronics, chemicals, machinery and petroleum products. But high dependency on...
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