Weak currency bane for some,boon for others

The slide of the Indian rupee against the US dollar has drawn mixed reactions in various segments of the industries in Pune

Published: August 20, 2013 1:02 am

The slide of the Indian rupee against the US dollar has drawn mixed reactions in various segments of the industries in Pune. For some,this has brought unexpected windfall. For others,the slide has caused an escalation of cost,which affects the end customer in the long run.

For realtors,a weak rupee has resulted in increased interest in Pune’s real estate markets. Rohit Gera,managing director of Gera Developers,said that enquiries from NRI clients have increased by almost 30 per cent. “Compared to last year,we have seen 10 per cent increase in the closure of projects by NRIs. It is our understanding that this trend will continue as a weak rupee increases the purchase power of NRIs,” he said.

However,this windfall has a flip side,with an increase in the import cost of marble and other accessories. “Of late,the weakening rupee has resulted in a 15 per cent increase in import prices and duties. The pinch will be felt by the realtor,” he said.

Gera said there will not be no immediate escalation of prices,but if this downward trend of the rupee continues,there will be a course correction in the market.

The burgeoning medical tourism industry in the city also expects some windfall. Sanjay Dandawate,general manager of Ruby Hall Clinic in Wanoworie,said they are expecting an increase in flow of foreign tourists from October. “Patients who come to us are mostly from Kenya and Nigeria. Of late,we have seen an increase in patients from South Sudan and Congo,” he said.

For the hospitality industry,the weak rupee has resulted in an increase in operating,especially in the food and beverage (F&B) sectors. Abhijit Chitnis,sales director of JW Marriott,said the rising dollar makes it difficult to import ingredients for their restaurants. Although Chitnis said that the industry does not plan to transfer the costs on to the clients,he admitted the sliding rupee is making things difficult for hotels.

PARTHA SARTHI BISWAS

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