FICCI president Anant Goenka, in an interview with ANI, highlighted the Indian rupee’s recent decline and described the weakening against the US dollar as temporary. He said the currency is likely to recover once India and the US finalise their trade agreement. According to Goenka, the rupee’s weakness stems from a widening current account deficit, delays in the trade deal, and continued foreign equity outflows.
“I believe, hopefully an agreement is on the anvil. Once that happens, I think we can see the rupee strengthening again,” Goenka said. “There is an immediate depreciation of the rupee that has happened, but I would not worry about it, and I think things should bounce back once an agreement is done with the US.”
Optimism on the trade deal
Goenka expressed confidence in the progress of the ongoing negotiations with the US, describing the deal as “nearly complete”, ANI reported. He noted that the participation of the US Commerce Secretary at FICCI’s Annual General Meeting further signals meaningful advancement towards a mutually beneficial agreement.
“The US is India’s largest trading partner. Both of us are strong, large democracies, and to that extent, I think both are inclined towards having a strong, positive, mutually beneficial relationship,” he said. “A large part of the negotiations seem to be concluded. It is now a matter of the final steps and signing that has to be done.”
He added that the agreement would be especially beneficial for sectors like garments, marine products, and gems and jewellery, helping reduce uncertainty and strengthening trade momentum across Indian industries, ANI reported.
Expectations around FTAs
Goenka also pointed to India’s expanding network of free trade agreements, referencing recent pacts with the United Arab Emirates and Australia. He said more significant agreements are expected in the coming quarter, including the trade deal with the US and an FTA with the European Union.
“It’s not just tariff reduction. It goes on to copyright law monitoring systems for making sure that the FTA is effective, people movement and so on,” Goenka told ANI. “The comprehensiveness is much deeper in terms of strengthening relationships and trade between the two countries.”