The environment surrounding corporate profits is becoming more severe in line with the decline in exports and production, and business sentiment of firms is worsening particularly in manufacturing. Income conditions of households have not yet deteriorated, but the decline in production is starting to affect the household sector mainly through the decrease in hours worked.
Yet, the exchange rate of the rupee is often singled out of all the key macro-economic variables and blamed for all the sins in the economy. What about the inordinate, unrelated-to-productivity 4/7  BIS central bankers' speeches  increases in wages and salaries at regular intervals that also undermine competitiveness of the economy? Don’t they impact on the exchange rate of the rupee?