India Inc Slows Down Forex Borrowings Amid Falling ₹

Chief executive officers (CEOs) of auto component firms, which import around $20.9 billion worth of materials annually, attribute the rupee's decline to global market volatility.

- Deepak Patel, Sohini Das, Ajinkya Kawale, Jaden Mathew Paul, Amritha Pillay & Dev Chatterjee

"Trade tensions triggered by US tariff policies have dented risk appetite, strengthening the dollar as a safe haven. Despite global factors, India's economy remains fundamentally robust," said Udit Sheth, vice chairman of Setco Auto Systems. "We believe once global volatility subsides, the rupee will rebound strongly."

Saket Mehra, partner and auto & EV industry leader at Grant Thornton Bharat, highlighted the impact on India's imports, which include electronics, semiconductors, battery components, and drivetrain parts, sourced mainly from Asia (66 per cent), Europe (26 per cent), and North America (8 per cent). "A weaker rupee increases input costs for manufacturers, especially in segments like electric vehicles and luxury cars that rely heavily on imports," Mehra said.