Weakening rupee leaves few winners among exporters

Under pressure until a US-India Bilateral Trade Agreement provides clarity.

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The uncertainty follows a year when merchandise exports to the US hit a record $86.51 billion in FY25, solidifying its role as India’s premier trading partner.

The chief executive of a major Indian apparel exporter lamented the minimal impact: “I'm so much underwater that this benefit is like raising me from 10 feet under water to 9 feet. I'm still submerged.”

The rupee’s volatility is being attributed to a mix of less aggressive Reserve Bank of India (RBI) intervention, a pending trade deal with the US, and significant foreign outflows. Overseas investors have net sold $17.9 billion in Indian equities this year, a reversal from the $124 million net purchases recorded in the previous year, according to National Securities Depository Ltd data.