The Indian rupee has become the worst-performing currency in Asia.
The INR has underperformed compared to currencies such as the Chinese Yuan and the Indonesian Rupiah.
It is pertinent to mention that US tariffs have adversely impacted Indian exports, leading to a record $41.7 billion trade deficit in October 2025.
The INR touched a low of 89 against the USD in November 2025, with potential to further slide to 90 if the trade deal remains unresolved, as per Indian media.
In August 2025, United States President Donald Trump’s 50 per cent tariff on Indian goods took effect.
The new 50 per cent rate, one of the US’s highest tariffs applied to a range of goods from gems and jewellery, garments, footwear and furniture to industrial chemicals. The Indian pharmaceutical industry has been exempted from immediate tariff increases due to the significance of generic drugs in providing affordable healthcare in the US. Roughly half of the US’s generic medication imports come from India.
At the time, India’s PM Modi pledged to protect farmers, cut taxes and push for self-reliance in the wake of tariff hikes.
India “should become self-reliant – not out of desperation, but out of pride … Economic selfishness is on the rise globally and we mustn’t sit and cry about our difficulties,” Modi said in his Independence Day speech at New Delhi’s Red Fort.
