If you think that winning in USD makes you richer by default, think again. The Authorized accountant Nitin Kaushik dismantles this illusion with a brutal reality control – your income is as strong as what remains after inflation, taxes and depreciation of money.
Let’s say you have $ 1,000 in hand. With American inflation on average by around 5% in recent years, this money is actually worth $ 950 a year later. Now convert this into INR, and another problem strikes: Indian rupee loses 4 to 5% of its value per year against the dollar.
This means a double blow – your dollar loses purchasing power in the United States, and your rupee loses value in your home.
“But wages in India are increasing more quickly,” support some. Kaushik is not in disagreement, but says that the trend is no longer reliable. “How many of you get an increase of 10% each year today?” he asks. Even if you are, the increase in taxes – both direct and indirect – stand out from real gains.
The result? Silent pressure on savings. India’s savings / GDP ratio has plunged to a 50-year-old hollow, even if more and more people join the workforce. More income, less retention.
This widening gap has deeper economic roots. Over the past decade, the US dollar has lost around 35% of its value due to inflation. But the fall of the Roupie was even clearer – unconsciously depreciating 3 to 5% per year. The difference in interest rate, a stronger US dollar, the trade and current deficits of India and foreign investment outings have all additional pressure.
Consumers are already feeling. Imported goods costly to holiday budgets narrowed abroad, the real impact appears in daily choices. For Indian investors, this also means that higher yields are necessary just to follow the pace of inflation and the erosion of currencies.
The point to remember from Kaushik makes you think: your income does not concern how much you win – it is how much you keep. In a world of hidden leaks and silent deductions, he asks the only question that counts: “Do you really do a lot of wealth or just run on a treadmill?”
