The rupee’s fall past 90 reflects a strong US dollar, FPI outflows and a widening trade deficit. While it raises imported inflation and debt costs, it aids exports like IT and pharma. The RBI follows a managed float, using forex reserves to limit volatility and maintain economic stability.
Click to View MoreThe Reserve Bank of India (RBI) manages rupee depreciation through tools like selling US Dollars and adjusting interest rates, addressing factors like trade deficits and capital outflows. A weaker rupee boosts exports but exacerbates inflation and increases debt costs, crucial for India's economic stability.
Click to View MoreThe US's "Trumponomics" strategy, which includes tariffs, has significantly impacted the global economy, triggering trade wars and disrupting supply chains. India faces both challenges like potential export losses and currency devaluation, and opportunities to reposition itself in the global market. A strategic response focusing on diversification and competitiveness is crucial.
Click to View MoreThe US imposed 50% tariffs on Indian imports, citing trade deficits, market access issues, and India's Russian ties. This threatens India's exports, particularly electronics, pharmaceuticals, and textiles, impacting economic growth and MSMEs. India is responding through dialogue, diversifying trade relations, strengthening domestic manufacturing, and advocating for multilateralism to navigate these pressures.
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