Should you assume incomes in USD makes you wealthier by default, assume once more. Chartered Accountant Nitin Kaushik dismantles that phantasm with a brutal actuality examine—your revenue is just as robust as what’s left after inflation, taxes, and forex depreciation.
Let’s say you could have $1,000 in hand. With US inflation averaging round 5% lately, that cash is successfully value $950 a yr later. Now convert that into INR, and one other drawback hits: the Indian rupee loses 4–5% of its worth yearly towards the greenback.
Which means a double blow—your greenback loses buying energy within the US, and your rupee loses worth again house.
“However salaries in India rise quicker,” some argue. Kaushik doesn’t disagree—however says the development is not dependable. “What number of of you might be getting a ten% elevate yearly at the moment?” he asks. Even in case you are, rising taxes—each direct and oblique—chip away at actual positive factors.
The consequence? A silent squeeze on financial savings. India’s savings-to-GDP ratio has plunged to a 50-year low, whilst extra folks be a part of the workforce. Extra revenue, much less retention.
This widening hole has deeper financial roots. Over the previous decade, the US greenback has misplaced about 35% of its worth attributable to inflation. However the rupee’s fall has been even sharper—constantly depreciating 3–5% yearly. The distinction in rates of interest, a stronger US greenback, India’s commerce and present account deficits, and international funding outflows have all added stress.
Shoppers are already feeling the hit. From costly imported items to shrinking vacation budgets overseas, the true impression is exhibiting up in on a regular basis decisions. For Indian buyers, it additionally means increased returns are wanted simply to maintain tempo with inflation and forex erosion.
Kaushik’s takeaway is sobering: your revenue isn’t about how a lot you make—it’s about how a lot you retain. In a world of hidden leaks and silent deductions, he asks the one query that issues: “Are you actually rising wealth, or simply operating on a treadmill?”
