Global Journal of Commerce & Management Perspective
Open Access

Abstract

Depreciation in the value of RS – Its Impact and Remedy

Dr. Tarkeshwar Pandey

We have seen for some of the items which was sold by business man where selling price is less than his actual purchase price. For imported items (like Toshiba laptops) the amount that we have to pay is in dollars but the Maximum Retail Price advertised by the company and printed on its catalog are in rupee. As rupee play a drastic impact in compare to dollar in the fluctuations of Indian economy as well as for foreign economy. According trends it takes around 4-5 months for consignment to arrive at there store, and by the time products are delivered to the business man the value of rupee gets devalued and we have to pay at current exchange rate and customers will pay only in printed MRP. Believe that completely for the difference in amount told that was far more than the actual devaluation of rupee in last 6 months. But it is hard to ignore the rapid pace with which rupee is depreciating. As we can see in the value of dollar in rupee has increased from 45 to 61 in last two years. That is around 35%. In other words, value of rupee has depreciated by 35% (assuming inflation of dollar to be negligible).