Rs at 92/USD likely to hit imports, foreign travel & education, but may offer relief to exporters

New Delhi: The rupee hitting a historic low of 92 against the US dollar on January 23 is likely to make imports ranging from crude oil to electronic goods, overseas education & travel costlier, stoke inflation concerns, but may offer some relief to exporters.

The Indian rupee has weakened sharply, slipping by 202 paise, or over 2 per cent, so far this month. In 2025, the currency had already fallen about 5 per cent amid sustained foreign fund outflows and a strong US dollar. While a depreciating rupee offers relief to exporters, it raises costs for importers and consumers, given India’s heavy reliance on overseas supplies.

Impact on Imports

India depends on imports for a wide range of goods, including crude oil, coal, chemicals, plastics, electronic items, fertilisers, machinery, edible oils, gold and steel. Importers need US dollars to settle payments, and a weaker rupee makes these purchases costlier. The impact is most visible in energy, as India imports about 85 per cent of its crude oil needs, but prices of electronics, mobile phone components, automobiles and household appliances are also likely to rise.

Education and Travel Abroad

A softer rupee increases the cost of foreign education, as students have to pay more rupees for the same dollar-denominated fees. Overseas travel also becomes more expensive, with higher rupee outgo required to meet expenses such as airfare, accommodation and local spending.

Remittances and Exports

For NRIs, a weaker rupee means remittances translate into higher rupee value at home. Exporters, too, benefit as they receive more rupees for every dollar earned. However, sectors that rely heavily on imported inputs may see part of this gain eroded by higher costs. In theory, low import-dependent sectors such as textiles benefit the most, while high import-intensive sectors like electronics gain the least.

Trade Data Snapshot

India’s imports rose 8.7 per cent to $63.55 billion in December 2025. The trade deficit widened to $25.04 billion, against $24.53 billion in November and $22 billion in December 2024.

Crude oil imports rose about 6 per cent to $14.4 billion, while silver imports surged nearly 80 per cent to $758 million. Gold imports, however, declined 12 per cent to $4.13 billion.

Policy View

Think tank GTRI has said India needs to balance growth and inflation control while reworking its rupee management and trade strategy. The Federation of Indian Export Organisations (FIEO) noted that while a weaker rupee boosts export competitiveness, high import dependence in sectors such as gems and jewellery and electronics can dilute the currency advantage.