A brand new analysis report from the financial division of State Financial institution of India has mentioned that the rupee will depreciate sharply following Donald Trump’s election as the subsequent US President, is unfounded.
“Throughout the Trump 1.0, rupee depreciated by 11 per cent, lower than it depreciated throughout Biden time period… Whereas a stronger greenback may lead to short-term capital outflows for short-term as buyers flock to dollar-based belongings, on a constructive be aware, a decrease rupee may present an export benefit, doubtlessly boosting revenues in sectors like textiles, manufacturing, and agriculture,” mentioned the report titles US Presidential Election 2024: How Trump 2.0 impacts India’s and World Financial system.
- Additionally learn: Trump 2.0: What it means for India’s commerce & diplomacy
Whereas the report acknowledged that Trump’s victory introduces a mixture of challenges together with elevated tariffs, H-1B restrictions, it additionally presents India with long run incentives to increase its manufacturing, diversify export markets, and improve financial self-reliance.
