Chief Economic Adviser V. Anant Nageswaran provided clarity on the Indian rupee’s ongoing weakness Thursday, assuring stakeholders it’s par for the course among emerging market peers facing identical geopolitical storms. Post the Economic Survey 2025-26 rollout in Parliament by Finance Minister Nirmala Sitharaman, his comments at a Delhi presser carried weight.
The rupee closed at 91.94, down a marginal 0.12 paise, pressured by a strong dollar and escalating gold import expenses that strain trade balances. Nageswaran contextualized this: ‘It’s consistent with other EM currencies under similar risks.’
Looking ahead, he stressed enduring economic fundamentals and reforms over 12-18 months by governments nationwide. Continued export expansion, he predicted, would reshape views on the rupee. A thriving manufacturing sector might even push growth to 7.5-8%, outpacing the survey’s 7% benchmark.
‘External events aren’t always controllable, but consistent growth will shift dynamics,’ Nageswaran remarked. Investors, he implied, should anticipate recalibration as India’s strengths shine through volatility. This perspective eases fears, positioning the rupee’s trajectory within a broader, recoverable global context.