US tariffs on India: Exporters seek temporary rupee relief
Indian exporters are urging the RBI to let them convert their dollar earnings at ₹103 per dollar (instead of the usual ₹88.33) after the US slapped 50% tariffs on Indian goods recently.
This move, they say, would help soften the blow from higher export costs and keep them competitive with countries like Vietnam and Bangladesh.
Exporters plan to ask RBI Governor Sanjay Malhotra for temporary relief, especially for contracts already hit by these new tariffs.
Exporters warn of 30% losses on shipments
The US buys nearly one-fifth of everything India exports—and in some sectors, it's even more.
These sudden tariffs are putting jobs at risk in key industries like textiles and jewelry, with exporters warning of up to 30% losses on shipments.
While a weaker rupee could help offset some pain, experts caution that forcing its value down might scare off investors and drain India's reserves.
The government is also looking at support options—think interest subsidies or loan breaks—to help exporters weather this storm without shaking up the currency too much.