• The $75 billion agreement is in the backdrop of the fall in rupee.
• It will reduce the demand of US dollar to ease the degradation in the value of rupee .
• India had 50% higher currency swap agreement this time as compare to the previous swap agreement in 2013 i.e. of $ 50 billion.
• Capital Market and Foreign Exchange Market of India will benefit from it.
• It will prove as the second line of Economic Defence of India. First line of defence is $ 393 billion foreign exchange reserve with the Reserve Bank of India on 30.10.2018.
• There is no immediate cost for swap thus it is highly beneficial for India.
• The mismatches of short term liquidity can be met with it.
• Speculative tendencies in the market be curbed .
• The confidence of foreign investors to India will be built.