US Fed rate hike: Indian exports may take small hit in long-term

While high global demand may sustain export growth, continued investments into India can make trade uncompetitive

India’s export earnings are expected to remain stable or at the most take a small hit in the wake of the US Federal Reserve raising interest rates.

Experts and exporters alike say this will happen as global demand continues to remain high, thereby cementing the rise of exports.  However, at the same time, India continues to attract global investments, thereby strengthening the Indian rupee, which may lead to exports becoming more expensive and thereby less competitive in the global market.

Hopes on high demand

The US Fed on Wednesday raised interest rates by 0.25 per cent, the sixth time since