Report: Indian trade expected to face challenges, but the worst period seems to be over.

Elara Capital wrote in a report that the trade outlook for the Indian fiscal year 2027 remains challenging, but the worst period may have passed. The agency stated that India has successfully diversified its export destinations, and the weakening rupee is helping to boost levels of commodity and service exports. The agency added that in May, India's exports of goods to countries other than the US grew by 37% compared to before the imposition of tariffs in January 2025. They also added that despite the weakness of foreign exchange and rising energy prices keeping import bills high, crude oil prices are expected to soften in the coming months, and with the reopening of the Strait of Hormuz, shipping costs may ease, potentially bringing costs back to normal.