A weaker rupee may boost export prices in the short run, but India’s long-term trade gains depend more on productivity, innovation, infrastructure and skilled labour. While depreciation can temporarily ease the trade gap, it also raises import costs, fuels inflation and risks capital flight in an import-dependent economy. Sustainable competitiveness therefore lies in strengthening real economic capabilities, supported by targeted policy measures such as incentives for exporters, attracting dollar inflows and stabilising forex markets.
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