Chief Economic Adviser V. Anantha Nageswaran stated that the Indian rupee’s depreciation against the US dollar is in line with other emerging market currencies facing similar geopolitical risks. Nageswaran emphasized that as India’s economic fundamentals remain robust, investors will likely reassess their views on the Indian currency. He highlighted that ongoing structural reforms and export growth could further bolster positive perceptions of the rupee in the future.
In the short term, certain factors may be beyond immediate control, but Nageswaran pointed out that the rupee’s value does not currently reflect the country’s macroeconomic fundamentals and sustained growth trajectory. He anticipated that once investors recognize these aspects, sentiments towards the rupee would likely improve. Nageswaran made these remarks during a press conference following the presentation of the Economic Survey 2025-26 in Parliament by Finance Minister Nirmala Sitharaman.
The Indian rupee traded relatively flat around 91.94, showing a slight decline on Thursday amid cautious market sentiment ahead of the upcoming Union Budget on February 1. Factors contributing to the rupee’s pressure include high gold prices leading to increased import costs and persistent foreign institutional investor (FII) outflows from domestic equities.
Nageswaran underscored the importance for countries, amidst global trade disruptions and geopolitical uncertainties, to enhance domestic capabilities, fortify supply chains, and secure strategic positions in global value chains. He emphasized the transformative potential of policy decisions in driving economic prosperity, stating that India’s sustained reforms and collaborative efforts between the government, industry, and citizens are crucial for achieving long-term developmental objectives.
