Question

if the indian rupee depreciates in the foreign exchange market, Indian exports will be _____ and indian imports will be ______??

Answer 1

The answer is that Indian exports will be cheaper, since rupee is weaker as compared to other currency, and hence same thing can be bought at lesser price by a foreign currency holder, and exports may be higher.
On the other hand since Indian currency has depreciated, lesser things can be bought from outside markets, or we can say that imports are costlier.
Hope it helps.

Answer 2

Indian rupee depreciates in foreign exchange market then the Indian exports will be cheaper and Indian imports will be expensive.

• Depreciation of Indian rupee in foreign exchange market will mean that the currency of India has become weaker as compared to other currencies of developed countries which means that a product’s cost in India would be higher as compared to the cost in those developed countries.

• This is the reason that the products that would be exported by India would be cheaper for the the customers that are buying it in other countries (whose currencies are stronger than rupee)  while the product that India will be importing will cost more in Indian market as compared to its cost in those countries.

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