Rupee depreciating is hurting the economy

The Indian rupee has hit 52 to the dollar from around 45 in the last two months time.

This has been a negative impact to the Indian economy. The only place where a Lower rupee benefits is the export oriented companies, but the huge turmoil in the world is not increasing out exports to a very large degree.

Our imports become heavier, and there becomes a negative difference in what India exports and what it imports.. Thus making our borrowings more than what we earn.

This impact can also be felt in our forex reserves ( hopefully we will not face the situation that we faced in 1991 where we did not have enough money to pay in dollars)

The RBI has taken some steps in the recent moves allowing for higher deposit rates for NRE accounts .. It makes it more attractive for NRI to send money into India.

Some positive impact will also be felt by the opening up of the retail market to 51% fdi by the government last week.

It's going to be tough walk for India for the coming future. There is going to be definately an negative impact on the Indian stock markets.
Hopefully the government and the RBI are working on this problem..

Hope they are investing smart