It’s not just the Indian importers who are a battered lot, thanks to the sharp depreciation of the rupee; foreign companies with large Indian operations are also very badly hit, as the Indian currency’s slide tells on their profitability in dollar terms. But equally, analysts are wondering whether the declining rupee – together with the reduction in oil prices – could mean that the current account deficit (CAD), the country’s external deficit before factoring in capital flows, has actually peaked and will now see a gradual decline by the end of FY13 (2012-13).
In fact, the rupee’s slide has two obvious sides to the coin. While, on the one hand, the fall has hit importing firms hard, the CAD could actually
