Modi's Strategic Patience Pays Off: India Secures Surprise US Deal Amidst Rupee Slide

• Narendra Modi's foreign policy has seen India balance relations with Russia and Ukraine, normalize ties with China, and secure a transformational EU trade agreement.
• The Indian rupee's strategic depreciation to historic lows (92 per dollar, then 90) was a calculated move, not a sign of crisis, to support exporters.
• India successfully negotiated down Trump's 50% tariff on Indian goods to 18% after holding firm, demonstrating leverage and conviction.
• The rupee's 4% depreciation in 2025 effectively reduced the tariff burden for exporters, making the 18% tariff considerably smaller.
• The RBI accumulated record reserves ($709.4 billion) and allowed the rupee to adjust naturally, supporting exports without triggering inflation or growth collapse.

Why It Matters: Modi's government used strategic patience and currency depreciation to secure a favorable US trade deal and boost exports.