SBI eases concerns over rupee despite possible FY26 BoP deficit

The buoyancy in India's trade talks with the US and others is palpable.

- STATESMAN NEWS SERVICE

And this clearly reaffirms India's desire to come out of the highest (among Asian peers) tariff structure while enhancing capability building across several loops with recently concluded LPG deals and strategic defence deals last month bolstering the fair probability of a mutually amicable, fruitful negotiation. The vexed Trump Tariff has certainly impacted India's labour-intensive sectors such as textiles, jewellery and seafood, particularly shrimp - which operates with a lower margin. To support the exporters, the Centre has approved Rs 45,060 crore, including Rs 20,000 crore in credit guarantees on bank loans. This is aimed to enhance the global competitiveness of Indian exporters and support diversification into new and emerging markets. By enabling collateral-free credit access under CGTMSE, it will be strengthening liquidity, as also ensures smooth business operations since the tariffs have led to a steep drop in container volume of shipments to the US.

In the face of all these, it is important to keep a close watch on what's happening on ground.