With the rupee weakening to a record low near the Rs 90-per-dollar mark, several export-oriented sectors are positioned to gain from the more favourable exchange rate, particularly information technology, pharmaceuticals and agricultural products such as rice. However, others such as textiles remain constrained by tariff-related headwinds that continue to outweigh the usual benefits of a softer currency.
For the IT industry — where nearly half of revenues come from North America — the depreciation is expected to lift realisations from dollar-denominated contracts and offer firms greater pricing flexibility. A softer rupee typically expands margins for service providers with deep US exposure, including large caps such as TCS and Infosys. “Deal wins for large caps have been driven by clients opting for vendor consolidation. With the rupee getting weaker, Indian IT firms will be able to offer higher discounts without much impact on the margins, resulting in better order book performance,” Pareek Jain, founder and CEO EIIRTrend said.
Pharma sector
The pharmaceutical sector is also expected to gain from the rupee’s fall, given India exports drugs worth over $30 billion annually and the US is the largest market for Indian drugmakers. “Companies like Lupin, Sun Pharma, Zydus who are biggest exporters to the US are set to gain from the rupee fall. “Some estimates suggest that their topline is expected to increase by 7-8% owing to the rupee depreciation,” said the head of the leading pharma association, on condition of anonymity.
Experts note, however, that part of this gain will be offset by higher input costs, as Indian pharma companies import bulk drugs (APIs, intermediates, etc.) worth about $10–11 billion annually from China, with trade settled in dollars.
Rice exporters to reap benefits
Rice exporters are similarly positioned to benefit. “A weaker rupee naturally improves export competitiveness, allowing Indian rice to become more attractively priced in key global markets. For exporters, this exchange rate advantage can help offset rising input costs and support better global demand,” Ranjit Singh Jossan, vice president, the Basmati Rice Millers and Exporters Association, Punjab, told FE.
He added that while volatility remains a concern, current levels offer meaningful opportunity for growth in both basmati and non-basmati shipments. India, which holds over 40% of global rice trade, has already recorded a 5.51% rise in rice exports in April–October.
The textile and apparel sector, however, continues to see little relief. India’s $37-billion export industry remains under pressure from the steep 50% US tariff, which has more than offset any currency-led gains. “A weaker rupee normally helps exports, but in the current tariff-driven situation the benefit is very limited,” Prabhu D, convenor of the Coimbatore-based Indian Texpreneurs Federation (ITF), told FE.
Exporters say they are offering heavy discounts to sustain volumes, with many working at cost levels or absorbing losses. “The cushioning effect (of currency depreciation) is limited when exporters rely on imported inputs, as those costs also rise in rupee terms,” Suketu Shah, CEO of Vishal Fabrics said.
Some manufacturers see marginal gains in competitiveness, but many, including Vishal Pacheriwal of Parnika India, note that firms are using this flexibility largely to protect volumes in a challenging tariff environment.