Impact of exchange rate fluctuations on exports across various sectors in Indian economy

Abstract

The national economies are far more interconnected in the present world than they were a decadeback. This has made exchange rates an important factor in import and export dynamics of aneconomy. Its volatility imposes significant real effects in terms of fluctuations in employmentand output. In the fiercely competitive trading environment where countries seek to expandmarket shares aggressively by compressing margins, volatility in the exchange rate can not onlytranslate profits into losses but also impact employment and economic welfare. Thus there is aneed to study the direct dependency of exports on exchange rates and other related factors acrossvarious sectors of the economy