West Bengal Chief Minister Mamata Banerjee earlier this week said the devalued rupee will lead to increase of oil import bills, and small businesses will be killed further post the demonetisation.
She also said farmers’ distress will be compounded as the rupee fell further on Thursday to a new record low beyond INR 70.20 against one dollar but recovered somewhat later.
After the news Chief Minister Banerjee tweeted, “Rupee crashes to its lowest ever. We are very concerned. Oil imports bill now jump. Prices of vegetables will go up. After demonetisation disaster, and now rupee slide, informal sector and small businesses will be further killed. Farmer distress will be compounded.”
The wider trade deficit, along with recent outflow of foreign funds weakened the Indian rupee to a fresh record low.
Meanwhile political expert are saying, surging price of petrol-diesel and lowest rate of rupee are going to be big concerns of Modi-led government. If with in this year they (read government) do not take proper step to control this value surging then it affects on upcoming assembly elections.
However, a source from government opined that South Block is planning to conduct assembly elections of Rajasthan, Madhya Pradesh and Chattisgarh with general election. If it happens then government will take time to manage the crisis.