Ludhiana: The World MSME Forum has raised an alarm over the ongoing depreciation of the rupee, warning that the currency’s decline is placing unsustainable pressure on the nation’s industrial sector.Over the past year, the rupee has weakened by about 13% against the US dollar, a trend that is damaging particularly to micro, small, and medium enterprises already struggling with narrow margins. Because India remains heavily reliant on imports for essential resources such as crude oil, machinery, electronics, and chemicals, the falling currency has directly inflated the cost of raw materials.Ludhiana’s Badish Jindal, president of the forum, claims that the weakening rupee is creating a ripple effect across the industrial ecosystem, where higher production costs inevitably lead to higher prices, reduced demand, and a loss of global competitiveness.The forum also warned of inflationary risks. As a weaker rupee drives up the price of fuel and transportation, the cost of essential commodities rises, eroding the purchasing power of consumers and further dampening domestic demand. The depreciation has a;lso increased the financial burden on companies and the govt to service foreign loans, as repayments have become more expensive in rupee terms.Even the export sector, which typically benefits from a weaker currency, is seeing those advantages offset by the rising costs of imported components and intense international competition. The forum argued that the current economic climate was neutralising any potential gains for exporters, leaving the broader manufacturing base in a state of high stress.In response to the crisis, the forum has called for a policy overhaul, urging the govt to focus on strengthening domestic manufacturing and reducing import dependence by promoting renewable energy and value-added exports. It recommended targeted support for MSMEs, including incentives for technology upgrades to improve productivity and help small businesses withstand global economic shocks.
