Weak rupee takes toll on smartphones, prices might shoot up soon
The Indian economy scene is pretty dreary right now. Rupee is falling, the industrial output is declining and things are getting expensive by the minute. As if the day-to-day expenses weren’t enough, the government has brought in a new set of import curbs, which will make buying smartphones tougher on your pocket. Already as of now, there is a huge gap in smartphone prices globally and Indian prices, and this will affect both the smartphone industry and the end-of-the-line-consumer and cause grief to people who have been saving up for buying a better smartphone.
All these measures are being put in place to help out India with its Current Account Deficit (CAD) which measures the difference between dollars coming in and going out of the economy and has gone down to 3.7 per cent from 4.8 per cent last year. Rupee has slid down to the lowest in years (Around Rs. 60 for a dollar), and we understand that this has impact on prices but there is a question here – whether it be that import prices rise due to the fall in rupee’s fall or that steps are taken to rectify, ironically by increasing the burden on the consumer only – the consumer lands in muddy waters both ways.
Shouldn’t the government work on decreasing the burden on consumers rather than decreasing it? Its like no matter what, you will always be burdened with extra costs on things you cannot stay without – a smartphone being a fine example of that.