If the Indian Rupee depreciates against the US Dollar, it immediately makes Indian IT service exports more expensive for American clients, thereby reducing the volume of India's software exports.

Depreciation means the Rupee loses value relative to the Dollar (e.g., moving from Rs. 70 to Rs. 80 per USD). For an American client paying in Dollars, Indian services actually become cheaper in dollar terms. Therefore, currency depreciation generally boosts the competitiveness of a country's exports (both goods and services) in the global market, while simultaneously making imports (like crude oil) more expensive for domestic consumers.