Rupee Hits Historic Low of 90 Against Dollar: Winners and Losers Across Sectors

New Delhi: The Indian rupee plunged past the 90-mark against the US dollar on Wednesday, marking a historic low and making it Asia’s worst-performing major currency this year. While the sharp depreciation poses challenges for several sectors, it also offers opportunities for others. Here’s a detailed look at who stands to lose and who could gain.

Reasons Behind the Rupee Slide
The rupee’s decline is driven by multiple factors: heavy foreign capital outflows, a widening trade deficit, delays in the India-US trade deal, and global geopolitical and economic uncertainties. Foreign investors have withdrawn over $17 billion from Indian markets this year. Meanwhile, India’s trade deficit surged to a record $41.7 billion in October, up from $32.2 billion in September, putting additional pressure on the currency.

Sectors Facing Losses

• Oil and Petroleum: India imports over 85% of its crude oil. A weaker rupee raises import costs, squeezing margins for oil companies. Petrol and diesel prices may remain stable, potentially increasing government subsidy burdens.
• Fertilizers: Heavily dependent on imports, fertilizer costs rise with a weak rupee. The government’s subsidy outlay for FY26 is estimated at ₹1.68 lakh crore.
• Education Abroad: Studying overseas becomes costlier in rupee terms, impacting education loans and EMIs.
• Airlines: With expenses in foreign currencies, including fuel and aircraft leases, airlines face rising operational costs, which may translate into higher ticket prices.
• Automobiles and Electric Vehicles: Luxury and electric vehicles rely on imported components. A weaker rupee increases production costs, raising prices for consumers.
• Consumer Electronics: Despite growing domestic production, smartphones, TVs, and other electronics still rely on imported parts. Prices may rise, offsetting GST-related benefits.
• Gold and Silver: India imports most of its precious metals. Rupee depreciation further inflates gold and silver prices, making jewelry costlier.

Sectors Benefiting from Rupee Weakness

• Remittances: Indians working abroad can send more rupees home, boosting foreign inflows. India received a record $135.5 billion in remittances in FY25, up from $118.7 billion the previous year.
• Exports: A weaker rupee makes Indian goods cheaper for overseas buyers, helping exporters remain competitive. The real effective exchange rate (REER) in October 2025 was 97.47, down from 107.27 a year ago, reflecting a shift from overvaluation to undervaluation, benefiting export sectors.
• IT and Pharma: IT companies earning largely in dollars see higher rupee-denominated revenues, strengthening profitability and global competitiveness. Similarly, the pharmaceutical industry, as a major exporter, benefits from a weaker rupee.