INR has depreciated by 7.3% against the USD over the last year. Domestic currency depreciation is never good news for countries with trade deficits. A trade deficit indicates that a country is importing more than it is exporting.India’s merchandise exports in June 2022 jumped 23.52% YoY to $40.13 billion, while imports increased 57.55% YoY to $66.31 billion. Thus, the country’s trade deficit ballooned to a record of $26.18 billion resulting in higher demand for the USD. Since…