IMPACT OF CHANGE IN THE DOLLAR

PRICES IN INDIAN INDUSTRY

PRESENTED BY: GUIDED BY:

Ivraj Harlalka (59) Nishant Thard
Assistant Professor,
Centre For Management Studies,
Dibrugarh University
 CONTENTS
Slide no.
• Introduction 1
• Factors affecting the change in dollar price 2
• Impact of change in dollar price in Indian industries 3
• Oil industry 4-6
• Pharmaceutical industry 7
• Tourism industry 8
• Telecom industry 9
• Automobile industry 10
• It industry 11
• Steel industry 12
• Aviation industry 13
• Conclusion 14
 INTRODUCTION
Dollar (Sign $) is the Currency Major Industries in India:
of more then 20 countries
● Telecom Industry
including-
● Aviation Industry
● Banking Industry
● Australia,
● Oil Industry
● Canada ,
● Pharmaceutical Industry
● Hong Kong,
● Agriculture Industry
● New Zealand, ● Tourism Industry
● Singapore, ● Automobile Industry
● the United States and many ● Steel Industry
more .
● IT Industry 1
Factors affecting
the change in
Dollar price

2
IMPACT OF CHANGE IN DOLLAR
PRICE IN
INDIAN INDUSTRIES

3
 OIL INDUSTRY

India is 3nd largest consumer of Consuming oil and imports in a large quantity. .

Oil is traded in US Dollar, so a minimum fluctuation in the US dollar affects the

Indian oil industry

OPEC is the main influencer of fluctuations in oil prices as it has share of 81.89% of
share of oil reserve and supplies 42% of crude oil

4
India -Oil Price & Consumption

5
CALCULATION OF PETROL PRICE WITH REFERENCE
TO INDIA
1 Litre crude oil cost ₹ 14.77

Company cost ₹ 23.77

Dealer Cost ₹ 27.06

Excise (collected by centre) ₹₹ 14.77

19.06

Dealer Commission ₹ 2.26

VAT (collected by States) ₹ 12.10

6

Retail Selling price ₹ 60.48

 PHARMACEUTICAL INDUSTRY

The Indian Pharmaceuticals market is the 3rd largest in terms of volume.

Pharmaceutical export from India stood at US$ 17.27 billion in 2017-18 and is
expected to reach US$ 20 billion by the year 2020 .

The Indian Pharmaceutical industry stands to benefit from a fall in the rupee as
60%-80% of its revenue comes from the exports.

7
 TOURISM INDUSTRY

Tourism is an important source of foreign exchange earnings in India

The tourism industry in India generated about US$ 100 billion in 2008 and it
increased to US$ 275.5 billion in 2018

The depreciation in Indian rupee is a blessing in disguise for India’s ever growing
tourism sector
8
 TELECOM INDUSTRY

Weakness in the Indian rupee increases foreign debt servicing costs of telecom
industries.

Decrease in the value of the Indian rupee significantly inflate the annual network
gear import bill for the telecom industry.

9
 AUTOMOBILE INDUSTRY

It increase the cost of production

Impact on the prize of imported vehicles

It will trouble car manufacturer

10
 IT INDUSTRY

Services will no longer be cheaper

IT professionals will lose jobs

Fall in GDP
11
 STEEL INDUSTRY

Impact on the domestic steel sector

Increase cost of debt of steel producers

Increases landed cost of imported coal

12
 AVIATION INDUSTRY

Makes imports expensive and exports cheaper

Can distort comparisons for no. of variables

13
 CONCLUSION

• The fall in the value of the rupee reduces the inflow of foreign
capital .
• The positive impact of the fall in rupee is the stimulation of
exports and discouraging imports , thereby improving current
account deficit.
• Decreases the overall profitability of Indian industries
14
 ANY
QUERIES