1. Good for exporters as they fetch dollars which in return will translate in rupees. However for an importer, they would be forced to pay more on (capital) importing products.
2. Fuel price would increase as Oil Marketing Companies feel the burden and would pass it on to consumers as petrol price is deregulated. This would increase the transportation cost (moving vegetables and fruits across villages and cities) and finally, INFLATION.
3. Students studying abroad will bear the brunt as expenses towards university/institute fee and living would move north.
4. Holiday abroad would be costlier as various charges would escalate.
5. As inflation increases, RBI has very less room to cut the policy rates. But if they do not cut, borrower's would have more trouble on loan (re)payments.
6. When imports become costlier, Current Account Deficit (CAD) (Mr. PCM's favorite 3 words) would widen and it is bad for a country's overall growth.
7. Foreign investors may postpone the investments.
Hope Rupee find its own way to appreciate against the Dollar.
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