The rupee's fall to a record low of 93.86 against the US dollar may offer a modest competitive edge to exporters but rising input costs are likely to limit the benefits, industry executives said. The depreciation could support exports in sectors such as textiles, leather, agro products, carpets, handicrafts and certain engineering goods. Nearly 60% of India's goods trade is conducted in dollars, and the weaker currency is expected to aid traditional export segments that have relatively low dependence on imports.

"A rupee level of Rs.93.86 provides a modest competitive edge to Indian exports by improving price realization, especially in sectors like textiles, leather, agro products, carpets, handicrafts and some engineering goods", said Ajay Sahai, director general, Federation of Indian Export Organizations. "It can support margins or market share in price-sensitive markets". However, the gains are partly offset by higher import costs, particularly for sectors dependent on imported inputs such as electronics, petroleum, gems and jewellery, and chemicals. A rising crude oil bill and broader inflationary pressures are also weighing on margins.