India can take advantage of US and CHINA trade war by exporting to both countries the products and services that they were initially use to import from each other which will give India a competitive edge and thus India will be able to leverage the trade war. Mostly India can leverage on its agriculture strength, software building strengths, automobile components and other strengths. The other main advantage that India can take is attracting the US firms and industries for FDI by winning their trust through showing India an eligible country for the same with perfect environment for the same.
Talking about the depreciation of Indian currency in 2013 mainly against the US dollars, for that Indian government initiated to reduce the effect of rising crude oil prices resulting into demand of more and more dollars which again contributing to the depreciation of Indian rupee. The government opened window for the crude oil importers to purchase dollars for an undecided frame of time so that the firms may not have to demand it from somewhere else which may again take a role of high demand resulting into hike in dollars due to the same.
Basically here laws of economics work as the demand locally for dollars exceeds its supplies then the dollar is inclined to get a hike from this phenomenon. They are the importers majorly who are in need of dollars for making payment for their imports. The other reason is the selling off of the investments by foreign institutional investors and taking them elsewhere. As they will be winding off or withdrawing or selling of the investments they will obviously demand dollars in exchange which will create pressure on rupee.
Another big factor contributing towards the depreciating currency is rising prices of crude oil. Now and then the prices of crude oil increasing in the global markets and at the same time the demand for the same in India is also increasing resulting in to more and more buying of the same. Now the payment for the crude oil is made in terms of dollars so whenever the India will purchase crude in international market it will only demand high amt. of dollars which will again make dollar more and more stronger resulting into weakening of rupee further.
Social Economic Political Technological 