Impact of Rupee Depreciation on IT Sector of Indian Economy

Abstract

Abstract: The Indian Rupee has significantly declined in value relative to other major currencies as a result of its volatility. In this advancing world, there are many things that have an effect on each other in some way or another. The effects of these economic changes are seen in the overall economic growth of a country. One of the uncertainties related to global trade is the fluctuation of exchange rates. Every area of an economy is impacted by this exchange rate fluctuation. The IT sector is one of the most crucial sectors of Indian industry as well as one of the largest drivers of export revenue for the country. Currently, this industry contributes about 7.7% of GDP. Depreciating currencies typically have a negative impact on several country sectors. However, the weakening of the rupee has been advantageous for the Indian IT sector. The US and Europe are the two regions where the Indian IT sector generates the most money. This is anticipated to have had an effect on the IT sector, which depends mostly on exports of hardware and software items as well as on the services provided by Indian IT workers in the US. This study aims to analyse the impacts of currency depreciation on the IT industry of Indian Economy.