Purchasing power due to the strengthening US dollar has made engineered components imports an attractive buy, according to the Wall Street Journal. Economists expect this purchasing power to last through mid-2023.1
Although purchasing power can be seen across cost competitive countries, China is at a disadvantage from the continuation of import tariffs that have been in place since mid-2018.2 3
Indian manufacturing is an attractive choice for engineered component imports. One US dollar buys 82.31 Indian rupee today, compared to 76.31 Indian rupee just six months ago.
A comparison of currencies shows the strength of the U.S. dollar vs the Indian rupee:4 5
Keywords: Manufacturing, India, Indian Manufacturing, Engineered Components, Imports
1Bob Tita, “Strong Dollar Pressures U.S. Manufacturing Rebound,” The Wall Street Journal, October 9, 2022, https://www.wsj.com/articles/strong-dollar-pressures-u-s-manufacturing-rebound-11665307981.
2Ana Monteiro, “US Seeks Public Comment on Review of Trump-Era China Tariffs,” Bloomberg, October 12, 2022, https://www.bloomberg.com/news/articles/2022-10-12/us-seeks-public-comment-on-review-of-trump-era-china-tariffs.
3Kenneth Rapoza, “New Data Shows U.S. Companies Are Definitely Leaving China,” Forbes Media LLC, April 7, 2020, https://www.forbes.com/sites/kenrapoza/2020/04/07/new-data-shows-us-companies-are-definitely-leaving-china/.
4“Currency Converter: Live Currency Exchange Rates Calculator,” Forbes Media LLC, accessed October 14, 2022, https://www.forbes.com/advisor/money-transfer/currency-converter/.
5Taylor Tepper, “Why is the U.S. Dollar So Strong Right Now?” Forbes Media LLC, September 30, 2022, https://www.forbes.com/advisor/investing/strong-dollar/.