FLASH: Modi Turns to Import Duties to Stabilize the Rupee

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The Modi government has followed through on a pledge to introduce tariffs onto a variety of ‘non-essential imports’ in order to stabilize the country’s economy. In all, 19 product categories will be targeted for new duties, including gemstones, plastics, jet fuel, home appliances, air conditioners, footwear, speakers, luggage, and others.

The move comes as India is swept up in a flight to safety away from emerging markets.

The Indian rupee has lost 13% against the US dollar so far this year, prompting several interventions from the Reserve Bank of India. These interventions have caused the country’s foreign reserves to drop from $426 billion in mid-April to $399 billion earlier this month.

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