Economic Awareness - Sectors of Indian Economy
If the Indian Rupee depreciates, what is the expected impact on India's export competitiveness?
If the Indian Rupee depreciates, what is the expected impact on India's export competitiveness?
medium Q5 of 15
Step-by-Step Solution
Step 1: Understand depreciation effect on exports
Depreciation lowers the Rupee value, making Indian goods cheaper in foreign currency terms.Step 2: Impact on export competitiveness
Cheaper prices increase competitiveness of Indian exports in global markets.Final Answer:
Exports become more competitive due to lower prices → Option CQuick Check:
Currency depreciation = more competitive exports ✅
Quick Trick: Weaker Rupee boosts export competitiveness.
Common Mistakes:
MISTAKES- Assuming depreciation makes exports expensive.
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