Input costs may deny exporters edge gained from rupee at record low. Textiles, leather, agro products, carpets may benefit

A depreciating rupee typically boosts exports, but rising global commodity prices can offset this advantage. This creates a complex scenario for export-oriented sectors.

• •The Indian rupee has reached an unprecedented low against the US dollar.
• •While this opens up favorable avenues for exporters, the simultaneous rise in raw material and energy costs is likely to negate these gains.
• •Industries such as textiles and leather might experience slight improvements, yet others will grapple with inflated import bills.
• •Risk flag: Further spikes in raw material and energy costs
• •Risk flag: Global demand slowdown