Recently, Donald Trump won the election of the new president of America. Trump has not yet announced the slogans of power, but he has threatened many countries that if they make fun of breaking the American dollar, then it will be their turn to suffer severe punishment. In January, the government is expected to form and introduce a new policy that is expected to impose tougher trade policies—duties. If the duty increases, the Indian economy may be affected. The rupee has continued to depreciate against the dollar for some time now and has touched a low of 84.76. Continued depreciation of the rupee against the dollar will hamper the economy, increase inflation, and trade may increase. RBI said that India has no plans for de-dollarization of its trade. Stock market expert Pareshbhai Vaghani said the foreign reserves are capable of handling any situation but if stricter restrictions on non-essential imports are imposed, the situation may improve and the rupee may see an improvement. Currently, exporters benefit greatly from a strengthening dollar. Exporters are happy. While the situation of the importers is opposite. The dollar may cross the 87.0 level in the near future. The biggest problem is that in many sectors we are dependent on imports from abroad. Despite the China One Plus policy, the share of China in the total import in the country is 18 percent, the most we import from China. 18% of the total import is from China. Electric equipment, machinery, iron and organic chemicals are imported from China with a total value of 122 billion dollars. Apart from this we are dependent on imports from developed countries like Russia, UAE, Saudi Arabia, South Korea, Japan and Australia. Exports to the US are the highest with 76 billion dollars, accounting for 18% of exports to the US. Precious stones, pearls, medicines and mineral fuels are exported. The total value of which is 75.8 billion dollars. If Donald Trump takes drastic measures, our situation may worsen. There may be a big upheaval in our exports and exports may also be disrupted. Although Trump may India There is a higher chance of not taking drastic action.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
Dollar empire: Rupee may depreciate to 87 in a year but no plans to de-dollarize – RBI
