With steep new U.S. tariffs on Indian goods set to take effect Wednesday (Aug 27), exporters are bracing for order cuts and tighter margins, particularly in textiles, gems, jewellery, and other labour-intensive sectors. The measures raise duties on many items to as much as 50%, though some categories, such as selected pharmaceuticals, are exempt.
On Tuesday, the rupee hovered near a record low of ₹87.8 per dollar, with traders reporting Reserve Bank of India interventions through state-run banks to slow the slide, though the RBI has not confirmed this. Analysts warn that prolonged volatility could ripple across South Asia, lifting import costs and energy prices at a time when the region is already grappling with currency pressures.
