“The decrease in the value of the rupee is bad, but India is better than peyush” in the round table

The Minister of Trade and Industry, Bush Goyal, acknowledged on Tuesday that the decrease in the value of the rupee is harmful to the economy, but said that the currency of India was better than most of its peers in the emerging market. With the highlight of global economic challenges, including strong growth in the United States and high interest rates, Goyal pointed out that although many currencies have seen sharp declines, the decrease in the value of the rupee was relatively modest.

“Consumption is a bad thing. Joyl said during his talk in the tour of the budget today,” We believe that in the long run, we must focus on a stronger currency because we are still a country that depends on import. “Almost half of the competing economies.

The minister said, “The decrease in the value of the rupee does not necessarily help the Indian economy, and this is why I am happy that our decrease in value is much lower than competing economies,” the minister said. He attributed the pressure of the recent consumption to global factors, including strong economic growth indicators in the United States and the constantly high interest rates of the United States. “All over the world, due to the strong growth numbers in the United States and its focus on building a growth story much faster, there was a capital trip to America. Also, interest rates in the United States are still very high. Given this position, he explained that the dollar explained The American may be strengthened. “

However, Joyal stressed that the performance of the currency in India should be compared not only with US dollars but also with other emerging markets. “Indian rupee is one of the best performance currencies among emerging market economies. Our value is almost in terms of percentage-we are about 2.8-3 % compared to 5.5-6 % that most other competing economies have seen,” I mentioned.

Joyal also indicated that the decrease in the value of the rupee has slowed in recent years. “If you studied the value of the rupee until 2014 against 2014, you will see a pleasant story. From 1947 to 2014, the rupee decreased by 5.5 % annually. From 2014 until now, it is about 2.5 %.”

The Indian rupee has faced increased volatility in recent weeks, which has been characterized by a 57-Pase to 86.62/USD on January 28, 2025-it decreased daily more severe within two years. This decrease, followed by its lowest level ever at $ 87.29/USD on February 3, from global trade tensions, especially the new US tariffs in China, Canada and Mexico, raised a feeling of risks.

Foreign portfolios (FPI) withdrew $ 11 billion from Indian stocks in the third quarter of the fiscal year 25, while external flows of debt increased with the spread of the return in the United States for a period of 10 years to its lowest level. The Indian Reserve Bank (RBI) has reduced its Forex interventions, allowing the Rubia to move more freely, while Forex reserves have decreased by $ 70 billion since September 2024. In addition, the high dollar index, an increase of 6.5 % since October 2024, has decreased more compressed Emerging market currencies, including inr.

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