Currency in Crisis: Analyzing India's Rupee Depreciation and Its Impact on Consumer Behavior (2015-2025)

The depreciation of the Indian rupee from 2015 to 2025 signifies more than a mere monetary phenomenon; it reflects profound structural and cyclical challenges facing the Indian economy.This paper explores the macroeconomic triggers that have weakened the rupee, including persistent current account deficits, largescale foreign portfolio outflows, dependence on crude oil imports, and shifting global financial conditions such as U.S. monetary tightening.These economic pressures have led to significant consequences at both national and household levels, particularly affecting urban consumption behaviour.A dual-track consumption pattern has emerged, characterized by premiumization among affluent segments and downtrading among middle-and lower-income groups.Concurrently, there has been a marked increase in consumer preference for domestic products, indicating a resurgence of economic nationalism and the Swadeshi movement.Findings from a household-level case study in Gandhinagar affirm this trend while also emphasizing quality concerns as a major determinant of consumer loyalty.Though the Reserve Bank of India (RBI) has intervened to contain exchange rate volatility, the underlying imbalances remain unresolved.The paper concludes that the rupee depreciation period has had a transformative impact on consumption psychology and economic behaviour in India, likely influencing policymaking, industry strategy, and consumer preferences well beyond 2025.