Falling rupee indicates falling Indian economy?

[nagsbhat]

There is another fraud and lobby for not hiking diesel price. I think recently there more diesel luxury cars than the trucks and other essential commodity transport vehicles. Government should have taxed diesel vehicles more. Ideally government should remove the subsidy on Diesel. Though it will affect the public as a whole but after a while it will cool off. If you look at the labor wages and the benefit they get out of PDS systems, I am sure poor will be the least affected anyway.
I think there is definitely a fraud and corruption even in the price hikes!

[m3_07]

Can someone list the impact of falling rupee on the raw materials in construction sector in terms what will stand to be impacted??

[msn1270]

Simple and straight forward.

All the raw material prices will shoot up. Steel, Cement, Paints, accessories.....etc.

1) Steel Industries Imports Coke which is one of their raw material from Australia, thailand...etc.
2) Steel industries even imports iron ore from African Countries.
3) India imports more than 60% of Crude Petroleum and edible oils(Soya, Palm, Sunflower, olive...etc).
4) Good quality Plastic polymers used in all the fields Including electrical accessories are imported.
5) Aluminium & Acrylic sheets used in designer houses are imported.
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When the rupee falls, Cost of import shoots up. Companies will pass the extra burden to Customers.
its not only for the raw mateials. Even the labor and consultancy charges shoots up.