Chartered accountant breaks down USD vs INR: Are you really earning, or just surviving?

If you suppose incomes in USD makes you wealthier by default, suppose once more. Chartered Accountant Nitin Kaushik dismantles that phantasm with a brutal actuality examine—your revenue is barely as sturdy as what’s left after inflation, taxes, and foreign money depreciation.

Let’s say you have $1,000 in hand. With US inflation averaging round 5% in recent times, 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 dwelling.

“However salaries in India rise quicker,” some argue. Kaushik doesn’t disagree—however says the pattern is now not dependable. “What number of of you are getting a ten% increase yearly right this moment?” he asks. Even when you are, rising taxes—each direct and oblique—chip away at actual positive factors.

The end result? A silent squeeze on financial savings. India’s savings-to-GDP ratio has plunged to a 50-year low, whilst extra individuals 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 as a consequence of 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 overseas funding outflows have all added strain.

Customers are already feeling the hit. From costly imported items to shrinking vacation budgets overseas, the actual affect is displaying up in on a regular basis selections. For Indian buyers, it additionally means larger returns are wanted just to maintain tempo with inflation and foreign money erosion.

Kaushik’s takeaway is sobering: your revenue isn’t about how a lot you make—it’s about how a lot you hold. In a world of hidden leaks and silent deductions, he asks the one query that issues: “Are you really rising wealth, or just working on a treadmill?”