MUMBAI: India must maintain a gross domestic product (GDP) growth rate of 7.5–8% to solidify its global relevance and unlock its full economic potential. This was the central takeaway from a roundtable discussion on “Geopolitics and Exchange Rate Risk Management” organized by MVIRDC World Trade Center Mumbai, alongside the Forum for Integrated National Security (FINS) and the All India Association of Industries (AIAI).
Prof. Ananth Narayan, Former Whole-Time Director of SEBI, highlighted that a shifting global order offers India a prime opportunity to become a trusted manufacturing and investment partner. He emphasized that businesses must integrate prudent currency hedging into their core strategies to counter interconnected market risks.
Dr. Vijay Kalantri, Chairman of WTC Mumbai, noted that India’s robust foreign exchange reserves of approximately USD 667 billion (as of late June 2026) and export revenues crossing USD 860 billion in FY 2025–26 provide a strong buffer against external volatility. However, he warned that unhedged geopolitical risks could still squeeze corporate margins and disrupt working capital.
Adv. Bal Desai of FINS added that factors like sanctions and supply chain disruptions now drive currency movements just as much as traditional economic metrics, making geopolitical risk assessment vital for treasury managers and investors.
While panellists like Maulik R. Shah urged businesses to proactively manage volatile commodity and forex risks, Prof. Sathianarayana Murthy and Mr. Satish Marathe reassured that current currency pressures are merely “passing clouds.” Backed by strong manufacturing capacity utilization exceeding 70% and robust macroeconomic fundamentals, India remains well-positioned for broad-based, long-term growth.
