The key takeaway from the empirical exploration of this book is that the impact exchange rate movement has on trade depends on the commodity composition of India’s merchandise trade. That is, with a higher share of labour intensive products, it is expected that the overall trade would respond strongly to movements in the exchange rate, whereas the same may not be observed when the share of commodities such as oil gain prominence. Based on such a result, this chapter posits the policy stance that may be more favourable given the objectives set forth by the government.