like any other situation which offers stability- offers certainty. It helps in financial planning, for import-sensitive sectors and boosts profit margins. In fact experts believe a stable rupee will not only boost imports by making them cheaper but exporters also stand to gain to negotiate long-term contracts and costs, therefore reducing inflation and boosting purchasing power in the long run.
During the West Asia war, the weakened by around 7 percent against the US dollar (from the time the war began till May), trading past 97 rupees per dollar at one point as high oil prices during the conflict weighed on the currency. India’s goods exports spiked by as much as 18 percent in May 2026, reflecting the highest uptick in six months, experts believe the weaker rupee did much of the heavy lifting for this surge. Senior Economist, Mitali Nikore told Timesnownews.com, “India’s goods exports hit a six-month high of $45.2 billion in May, up 18 per cent, with the weaker rupee doing much of the heavy lifting. A depreciating rupee makes Indian goods cheaper in global markets, and that price advantage is what kept exports from crashing through the West Asia crisis, led by electronics and petroleum products. But the same weak rupee also inflated the import bill, which is why the trade deficit still widened to $28.2 billion.”
Commerce Secretary Rajesh Agarwal said, “many of the trade-related challenges could ease significantly if the peace deal holds and remains sustainable.” However, experts told Timesnownews.com that trade reforms are key to sustainable, long-term export growth, Senior Economist, Mitali Nikore told Timesnownews.com, “with the US-Iran peace framework and the Strait of Hormuz set to reopen, crude prices have eased and the rupee has already firmed to a seven-week high near 94.5 per dollar. The near-term path now points to a steadier, stronger rupee as pressure on the oil import bill recedes. A weak rupee can prop up exports in the short run, but durable, broad-based export growth will depend on the easing of trade restrictions and a more stable external environment, not on the currency.”