US tariffs on Indian goods and Russian oil upend trade norms, threatening market access
$86.5 bn in exports face over 50% tariffs, pricing most goods out; electronics, pharma may be next
Export losses and fixed imports like crude could widen the trade and current account deficits
Net FDI just $350 mn; $11.5 bn in portfolio outflows this year signal investor caution
Down 2.3% in 2025 despite a weaker dollar; reserves shouldn’t be used for defence
Makes exports competitive, cushions tariff impact, and aids adjustment to new trade realities