New Delhi. Indian Rupee crossed 90 for the first time and with this, every pocket of the house, every EMI and every dream seems to be becoming expensive. The markets may consider this to be just a number, but for common families this decline is coming as a direct blow of 10 to 25 percent in expenses. From foreign studies, honeymoon trips, gas cylinders, petrol, phones to cars, whatever comes from outside is becoming more expensive. It is now important for every family to understand why the rupee fell, how much it can fall further and who will benefit from it.
Three major reasons have emerged behind the weakness of the rupee. The first reason is the increasing trade tension between India and America, which has been worsened by recent unsuccessful meetings. America has increased tariffs on Indian exports by 50 percent, which has shaken the confidence of the industry. The second reason is the exit of foreign investors, who withdrew $17 billion from Indian stocks in 2025. The third reason is the change in RBI policy. The International Monetary Fund has put India’s exchange rate from stable to crawl like, which means that now RBI is only guiding the rupee and not giving that much aggressive protection.
Why this fall is not the same as before
This time the rupee is in special trouble because the dollar is not as strong as it was in 2022, yet the rupee is slipping. Despite this, India has a forex reserve of 690 billion dollars, due to which there is no need for panic like in 2013 or 2018. The effort of RBI is that the rupee should go down gradually according to the real economic situation so that the exporters can get some relief. David Forrester of Credit Agricole says that perhaps the rupee will be allowed to weaken a little more so that Indian exports can compete a little amid American tariffs.
Is it beneficial for exporters
The bookish answer is yes, but in reality the story is more complicated. IT companies and business services firms that bill in dollars and spend in rupees are seeing direct benefits in margins. Pharma sector also benefits, but they remain under pressure due to increase in the prices of raw materials. Industries like textile and light manufacturing should have benefited, but American tariffs of 25 to 50 percent are standing as a wall, due to which even the weak rupee is not becoming a big game changer.
Meanwhile, the families receiving remittances are happy
In 2024, India will receive remittances of 137 to 138 billion dollars, which is the highest in the world. Earlier money transfer of 500 dollars used to give 40 thousand rupees, now it is giving 45 thousand rupees. For rural and low income families, this additional amount of Rs 5,000 often becomes a big help in paying for treatment, fees or land.
Biggest impact on families studying abroad
This decline is a direct blow to parents who are sending their children to study abroad in 2026 or 2027. Earlier, the annual fee of 50 thousand dollars at the rate of 80 was Rs 40 lakh. Now at the rate of Rs 90 this fee has become Rs 45 lakh. A total of Rs 20 to 25 lakh extra charges may be incurred for a four year course. EMI for dollar loan takers has increased by 12 to 13 percent.
Traveling couples and families are also under pressure
The 5 day package to Maldives which earlier used to cost Rs 2.5 lakh, has now reached Rs 2.8 to 2.85 lakh. Thailand’s package of Rs 1.2 lakh is now around Rs 1.4 lakh. A trip to Europe was already expensive, now it has gone up by 10 to 15 percent more. Couples who were planning honeymoon after marriage, now have to re-make their budget.
Kitchen and petrol expenses are also going to increase.
India buys 90 percent oil and 60 percent edible oil from outside. As the rupee weakens, their prices are likely to increase by 8 to 15 percent. LPG cylinder is already expensive and new pressures are visible ahead. There is a possibility of a rise of Rs 5 to 8 per liter in petrol and diesel.
Planning is necessary
If the rupee falls further, families may face a bigger blow, hence planning is necessary. If the income is in rupees then dollar loan should be avoided. Those studying or paying abroad are being advised to lock some amount in a forward contract. For 2026 planning, consultants are saying that the budget should be made at the rate of Rs 93 to 95 per dollar. Gold, SGB, IT shares, pharma exporters and dollar based funds can provide better protection for investors.
