From ACs To EVs — How Sliding Rupee Can Hit Your Pockets

The Indian rupee's value saw a downturn of 5% in 2025, despite its other key economic indicators exhibiting a positive status. This slide may spur a price rise as many parts used to make products in India are purchased from abroad.

This would, in turn, mean that manufacturers will pass the costs on to retailers, who would then mark up their prices, selling their products at a higher rate to consumers. This may take place despite the nation's retail inflation trending lower, with October seeing a record low of 0.25%.

• The EV industry may see notable cost pressures from the rupee's depreciation as they purchase lithium-ion batteries, motors, and semiconductor chips from countries like Taiwan, South Korea, China and Japan. These price rises may only show up in the long term as EV makers are shielded by long-term contracts and import insurance.

• This may also spread to durable consumer electronics, such as air conditioners and television sets, as well as mobile phones. This is due to the fact that components like compressors for ACs and printed circuit boards are also purchased from suppliers based in other countries.

• With the Indian currency crossing the threshold of Rs 90 per dollar, overseas education will also likely get more expensive as parents will have to pay a higher sum in equated monthly installments to send their children to study abroad.

• Firms engaged in foreign borrowing will incur a higher expense in clearing their debts. Investors' hedging costs may also be at a disadvantage.

• The import bill for sourcing India's crude oil may also get steeper in value, leading to companies whose products depend on the resource may be adversely impacted. Up to 80–85% of India's oil requirements are sourced from imports, potentially exacerbating the issues.

• Due to prices at the pumps being unchanged despite fluctuating crude costs, oil marketing companies may also face margin pressures.

• India also imports 100% of its potash and 90% of its phosphate fertilizers from abroad, which would imply that the domestic prices for these products might also see a hike.

The Reserve Bank of India reported that it does not see considerable challenges for India's economy with regards to the rupee decline. RBI Governor Sanjay Malhotra had also stated that a 3-3.5% downturn in the rupee's value every year is in line with the historical average.