Trade and fiscal related factors are more long term in nature. Economies that tend to see consistently elevated levels of trade deficit tend to have a weaker currency. India runs a monthly trade deficit of $16 billion or approximately $200 billion per year. Currently, the annual import bill is close to around $500 billion. An important factor that determines the rupee strength is how many months of forex cover the RBI has. For example, the forex chest is at $395 billion, which is sufficient to cover 9 months of imports. This is considered a relatively comfortable situation by global standards. If this ratio falls to around 9 months, then the INR tends to depreciate. On the deficit front, the ability of the current government to keep fiscal deficit at around 3% of GDP is a major positive for the INR.