Indian Rupee Hits ₹90.41: 3 Key Reasons Behind the 2025 Fall and Its Business Impact

• 4 December 25

Indian Rupee Hits ₹90.41: 3 Key Reasons Behind the 2025 Fall and Its Business Impact

India Faces a Double Hit: Rising Global Commodity Prices + Rupee Depreciation

Indian companies especially in FMCG, aviation, and other import-dependent sectors are entering a challenging phase as input costs continue to rise sharply. A major contributor: the Indian rupee hitting a new historic low of ₹90.41 per US dollar in 2025.

With global crude, edible oils, chemicals, packaging materials, and aviation fuel prices already elevated, this steep drop in the rupee is pushing operational costs even higher for businesses across the country.

Rupee Hits a New Low at ₹90.41 per Dollar  Why Did It Fall?

The Indian rupee has depreciated nearly 4% in 2025, touching an all-time low. Economists point to three major reasons:

1. Stronger US Dollar

• The US Federal Reserve’s continued tight monetary stance strengthened the dollar globally.

• Investors moved funds back to the US, causing emerging market currencies including the rupee to weaken.

2. High Crude Oil & Commodity Imports

• India imports over 85% of its crude oil.

• High global oil prices increased dollar demand for imports, putting downward pressure on the rupee.

3. Weakening Export Growth & Global Uncertainty

• Slowing global demand has impacted India’s export revenues.

• Rising geopolitical tensions and global inflation triggered higher FPI outflows, weakening the rupee further.

Net result: A weaker rupee → higher import costs → higher operational costs for Indian companies.

Impact on FMCG, Aviation & Import-Heavy Sectors

FMCG Sector

• Imports of edible oils, crude derivatives, packaging materials, fragrances, and chemicals have become more expensive.

• FMCG companies may:

  • Increase product prices

  • Reduce grammage

  • Introduce smaller pack sizes

  • Rework sourcing contracts

• Urban consumer demand, already under pressure, may soften further.

Aviation Sector

• Jet fuel (ATF), spare parts, and aircraft lease payments are all dollar-denominated.

• With the rupee at 90+, operational costs rise drastically.

• Airlines may face:

  • Narrower margins

  • Higher ticket prices

  • Increased likelihood of quarterly losses

Import-Dependent Industries

• Chemicals

• Electronics

• Logistics

• Petrochemicals

• Packaging
  These sectors will experience margin erosion unless they secure hedging or renegotiate supply contracts.

Broader Impact on All Businesses — Key Risks

What This Means for Business Leaders (2025–26)

To remain resilient, companies need to rethink strategy:

1. Re-engineer Cost Structures

• Identify dollar-linked expenses and renegotiate long-term contracts.

• Explore multi-supplier models to reduce dependency.

2. Localize Sourcing & Reduce Import Reliance

• Shift to local raw materials wherever feasible.

• Partner with domestic packaging, ingredient, and logistics providers.

3. Strengthen Pricing Strategy

• Introduce flexible pricing models.

• Review pack sizes, margin thresholds, and distributor margins.

4. Improve Operational Efficiency

• Automate supply chain, data reporting, and procurement.

• Reduce wastage and energy inefficiencies.

5. Use Forex Hedging Tools

• Forward contracts

• Currency swaps

• Dollar pooling strategies

6. Strengthen Cash Flow & Compliance Planning

• Build financial buffers for volatility.

• Reassess budget frameworks and payroll impacts.

Why This Matters for Wisecor Clients

At Wisecor, we work closely with clients in industries that are directly affected by rupee depreciation and rising input costs.

Our support becomes critical in areas such as:

• Cost forecasting and financial planning

• Payroll & compliance management under inflationary pressure

• Data analytics for cost optimization

• Vendor management & procurement support

• Risk mitigation and contract restructuring

With our technology-led outsourcing and analytics solutions, Wisecor helps organizations stay resilient in an increasingly volatile economic environment.

Final Outlook

Rising global commodity prices + a depreciating rupee have created a difficult cost environment for Indian businesses. But with the right strategy cost optimization, analytics-driven decision-making, strong compliance planning, and operational efficiencies organizations can navigate this volatility more effectively.

Wisecor remains committed to helping businesses stay agile, stable, and future-ready.