The U.S. has made a big deal with India!
On September 30, the latest news from India, the exchange rate of the Indian rupee against the US dollar fell below the lowest price in history. The exchange rate of the Indian rupee against the US dollar fell to 88.7975, a record low. This was not caused by the American people not buying it, but by the tariffs imposed by the United States.
When the U.S. tariff bar fell on August 27, the Indian business world shouted to end, but no one thought that the rupee would collapse so quickly.To know that the U.S. is India's largest exports depend on the mountain, accounting for two percent of India's total exports, this increase in taxes directly covered 87 billion dollars of goods, all of which are textiles, jewelry such as Indian food.
India's textile factories and jewelry workshops instantly like stuck in the neck, US customers' orders disappear like a tide.Gujarat's diamond processing area was originally machine-booming, now half the factories are shut down, the streets of the city of Sulat are empty, even the workers carrying the original drilling can not find work.
The U.S. tax increase this time is not a simple 25%, but a direct doubling to 50%. The prices of shirts, leather shoes, and necklaces exported by India to the United States increased by 30% overnight.
Textile mills in Vietnam and Bangladesh are happy. They have long been staring at orders from India. A phone call from an American customer shows that Vietnam's quotation is 15% lower than that of India, and it can be shipped within a week.
The Federation of Indian Export Organizations calculated that the 50% tariff made 55% of Indian goods completely uncompetitive in the U.S. market, and 300,000 workers in the leather industry alone were facing unemployment.
The Indian government was so anxious that it quickly announced subsidies to exporters, suspended import tariffs on some raw materials, and accelerated negotiations on free trade agreements with the European Union and the Middle East.
But these measures are like a toll on seriously injured people, no use at all. The Governor of the Central Bank of India, Sanjay Malhotra, admitted that the depreciation pressure on the rupee is too great and that foreign investment is flying out like a scared monster.
From July to September, foreign institutional investors sold 1.03 trillion rupees of Indian assets, which is equivalent to 10 billion rupees flowing out of Indian stock and bond markets every day. The Sensex index in Mumbai dropped from 60,000 points to 50,000 points, and the pension money of countless Indian families shrank.
Even worse is India’s energy imports, 90% of India’s oil is imported, rupee depreciation has caused oil prices to rise to 120 rupees per liter, truck drivers strike protests, and supermarket fruits and vegetables have started to rise because of the transportation costs are too high.
The Modi government has come up with a crooked trick and tried to internationalize the rupee to get rid of its dependence on the US dollar. They established a "dirh-rupee" settlement mechanism with the United Arab Emirates and also discussed with Russia using rupee to buy oil.
As a result, Russia directly refused because Russia already had billions of rupees in its hands and could not spend it. India exported too little to Russia, and no one wanted the rupees in the international market.
India’s central bank data struck Modi’s fantasy that the scale of cross-border payments in the rupee accounted for less than 0.01 percent of global trade, and that even Sri Lanka was unwilling to settle with the rupee, afraid of being hit by the Indian card.
The U.S. tariff war hit India very badly, but the most ironic is that the U.S. itself is not cheap. India is the third largest importer of U.S. agricultural products, the Indian farmers are not buying U.S. soybeans and cotton, instead of importing from Brazil.
The American Farmers Association protested that the tariffs cost them $2 billion in losses in orders. What's even more funny is that India's generic drugs account for 40% of the U.S. market. U.S. pharmaceutical companies originally wanted to take the opportunity to raise prices. As a result, the Indian government announced that exports of drugs to the United States would be exempted from tariffs. The shelves of U.S. pharmacies are still full of Indian-made antibiotics. The price has not dropped at all.
This tariff war is like a tragedy, the United States thought against Russia methods can make India down, did not think that India did not fall, the first itself was counterfeited. The fall of the Indian rupees is just beginning, then India may impose retaliatory tariffs on American cars, electronics products, US multinational investment in India will blow water. The Modi government has released a fierce saying, "India will not yield under pressure", but the fierce words can not be eaten, the Indian economy winter has just begun.
Source: Daily Economic News (The exchange rate of the Indian rupees against the US dollar fell to a record low of 88,7975)
#MCN Micro Head Partner Program
On September 30, the latest news from India, the exchange rate of the Indian rupee against the US dollar fell below the lowest price in history. The exchange rate of the Indian rupee against the US dollar fell to 88.7975, a record low. This was not caused by the American people not buying it, but by the tariffs imposed by the United States.
When the U.S. tariff bar fell on August 27, the Indian business world shouted to end, but no one thought that the rupee would collapse so quickly.To know that the U.S. is India's largest exports depend on the mountain, accounting for two percent of India's total exports, this increase in taxes directly covered 87 billion dollars of goods, all of which are textiles, jewelry such as Indian food.
India's textile factories and jewelry workshops instantly like stuck in the neck, US customers' orders disappear like a tide.Gujarat's diamond processing area was originally machine-booming, now half the factories are shut down, the streets of the city of Sulat are empty, even the workers carrying the original drilling can not find work.
The U.S. tax increase this time is not a simple 25%, but a direct doubling to 50%. The prices of shirts, leather shoes, and necklaces exported by India to the United States increased by 30% overnight.
Textile mills in Vietnam and Bangladesh are happy. They have long been staring at orders from India. A phone call from an American customer shows that Vietnam's quotation is 15% lower than that of India, and it can be shipped within a week.
The Federation of Indian Export Organizations calculated that the 50% tariff made 55% of Indian goods completely uncompetitive in the U.S. market, and 300,000 workers in the leather industry alone were facing unemployment.
The Indian government was so anxious that it quickly announced subsidies to exporters, suspended import tariffs on some raw materials, and accelerated negotiations on free trade agreements with the European Union and the Middle East.
But these measures are like a toll on seriously injured people, no use at all. The Governor of the Central Bank of India, Sanjay Malhotra, admitted that the depreciation pressure on the rupee is too great and that foreign investment is flying out like a scared monster.
From July to September, foreign institutional investors sold 1.03 trillion rupees of Indian assets, which is equivalent to 10 billion rupees flowing out of Indian stock and bond markets every day. The Sensex index in Mumbai dropped from 60,000 points to 50,000 points, and the pension money of countless Indian families shrank.
Even worse is India’s energy imports, 90% of India’s oil is imported, rupee depreciation has caused oil prices to rise to 120 rupees per liter, truck drivers strike protests, and supermarket fruits and vegetables have started to rise because of the transportation costs are too high.
The Modi government has come up with a crooked trick and tried to internationalize the rupee to get rid of its dependence on the US dollar. They established a "dirh-rupee" settlement mechanism with the United Arab Emirates and also discussed with Russia using rupee to buy oil.
As a result, Russia directly refused because Russia already had billions of rupees in its hands and could not spend it. India exported too little to Russia, and no one wanted the rupees in the international market.
India’s central bank data struck Modi’s fantasy that the scale of cross-border payments in the rupee accounted for less than 0.01 percent of global trade, and that even Sri Lanka was unwilling to settle with the rupee, afraid of being hit by the Indian card.
The U.S. tariff war hit India very badly, but the most ironic is that the U.S. itself is not cheap. India is the third largest importer of U.S. agricultural products, the Indian farmers are not buying U.S. soybeans and cotton, instead of importing from Brazil.
The American Farmers Association protested that the tariffs cost them $2 billion in losses in orders. What's even more funny is that India's generic drugs account for 40% of the U.S. market. U.S. pharmaceutical companies originally wanted to take the opportunity to raise prices. As a result, the Indian government announced that exports of drugs to the United States would be exempted from tariffs. The shelves of U.S. pharmacies are still full of Indian-made antibiotics. The price has not dropped at all.
This tariff war is like a tragedy, the United States thought against Russia methods can make India down, did not think that India did not fall, the first itself was counterfeited. The fall of the Indian rupees is just beginning, then India may impose retaliatory tariffs on American cars, electronics products, US multinational investment in India will blow water. The Modi government has released a fierce saying, "India will not yield under pressure", but the fierce words can not be eaten, the Indian economy winter has just begun.
Source: Daily Economic News (The exchange rate of the Indian rupees against the US dollar fell to a record low of 88,7975)
#MCN Micro Head Partner Program