New Delhi: The depreciation of the Indian rupee against the US dollar aligns with the weakening of other emerging market currencies facing similar geopolitical risks, said Chief Economic Advisor V. Anantha Nageswaran on Thursday.
Responding to a question during a press conference held in the national capital after the presentation of the Economic Survey 2025-26 by Finance Minister Nirmala Sitharaman in Parliament, Nageswaran stated that the fundamental factors of the economy continue to demonstrate strength and stability. He expressed confidence that investors will reassess their stance on the Indian currency in the near future.
He further added, “If structural reforms implemented over the past 12 to 18 months at both central and state government levels continue, along with sustained growth in Indian exports, it will reinforce the revised perceptions about the Indian rupee going forward.”
Nageswaran noted, “While some short-term developments are beyond our control, the more important point is that the rupee’s movement does not reflect its macroeconomic fundamentals. Consistent growth rates will certainly attract investor attention, which could lead to a change in the situation.”
The rupee has witnessed a steady decline against the dollar in recent sessions, closing at 91.94 on Thursday, down by 0.12 paise. The pressure on the rupee has also been influenced by the rising gold prices, which have increased the country’s import bill.
Additionally, the Chief Economic Advisor highlighted the potential of a strong manufacturing sector to raise the country’s economic growth rate from 7.5 percent to 8 percent, exceeding the average growth rate estimate of 7 percent mentioned in the Economic Survey.
This outlook reflects the government’s ongoing focus on reforms and export growth as key drivers to strengthen the rupee and the overall economy.
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