India's Trade Flows Soar with Exchange Rate Uncertainty, Boosting Economic Growth
This research looked at how uncertain exchange rates affect India's trade with its key partners over 18 years. They studied different types of trade like raw materials, chemicals, textiles, metals, and more. The findings showed that when there's uncertainty in exchange rates, trade in raw materials with nearby countries in South Asia decreases. However, trade in various industries with major partners improves. The study confirmed that countries with growing economies and those closer together tend to trade more with each other.