As the Indian rupee deep dives against the dollar the prices
of every day foods are sky-rocketing. Rs. 70/- per dollar is the new milestone
that is being watched out for. Almost everyone remembers when India was trying
to hold Rs.50/- per dollar steady – believing that too will reduce. What with
the potential “big leap” just around the corner? But not only did that not
happen, the dropping rate has made India a poorer country.
Accompanying the sharp fall of the Indian rupee against the
dollar is the steep rise in the cost of living. “Aloo pyaaz ka bhav jaante ho?” Who hasn’t heard this (it’s even
been used in some movies) phrase to indicate the expense of living. Sadly, the
rise in the cost pyaaz or onion is keeping
pace with the fall in the value of rupee. In all likelihood, onions will
probably become the new yardstick (so far it is the prices of gold) to know the
value of the rupee.
A further blow to the common man has been the rise in the
prices of home loans. During the boom time, many bought houses (first houses
and even second homes) when the interest rates fell to hover around 9 point
somethings. This has changed. Interest rates have shot up and the effect will
be felt even by those who have already taken loans when the banks unilaterally
send out messages to them informing them about higher EMIs. Add to this the
tight job market. Employers are showing poor Q1 results and will tighten their
belts. This can mean that there won’t be salary revisions or bonuses – in fact,
there may be salary cuts. And folks will have to be happy that they still have
a job.
People who had planned their lives and finances with a
particular amount (offsetting incomes with EMIs) in mind, will have to quickly
rework their budgets and find that they really have to start keeping track of
the rate of onions. It won’t be a surprise if in the near future India becomes
one of the most expensive countries to live in.