According to a report by The Economic Times on April 19, in response to the depreciation of the Indian rupee against the US dollar, numerous Indian companies have been forced to switch to settling imports from China in renminbi (RMB) and continue expanding local procurement. Since the outbreak of the U.S.-Iran conflict, the Indian rupee has depreciated approximately 3% against the U.S. dollar on a temporary basis. In late March, the intra-day exchange rate of the Indian rupee even fell below the 95 mark, reaching a historical low. Meanwhile, the Indian rupee has depreciated by about 2% against the RMB during the same period, a relatively moderate decline that highlights the greater stability of the RMB's movement. Given that China remains a key supplier of core components for India's electronics industry, Indian firms are increasingly opting for RMB settlement for imports from China in order to reduce procurement costs and secure better supplier pricing. Companies such as PG Electroplast Limited (PG Electroplast) and Super Plastronics have already initiated RMB-based settlements for their imports from China, while enterprises like Godrej Appliances are currently assessing the feasibility of adopting RMB settlement. Additionally, leading Indian retail chains such as Lifestyle and outdoor apparel and footwear brand Woodland are intensifying efforts to replace imported goods with locally manufactured alternatives.
Original source: toutiao.com/article/1863059385163785/
Disclaimer: The views expressed in this article are those of the author(s) alone.