‘Rupee depreciation is bad, but India fares better than peers’: Piyush Goyal at IT-BT Budget Round Table 2025
On Tuesday, the Minister of Trade and Industry Piush Goal confessed that Rupee’s devaluation was harmful to the economy, but said that India’s currency has performed better than developing market peers. Highlighting global economic challenges, including the strong US growth and high interest rate, the Goyem noted that the devaluation of Rupees was relatively modest before many currencies.
“The devaluation is a bad thing. We believe that in the long run we need to focus on a stronger currency, as we are still an dependent country of imports, “said almost half of competing farms in India today.
“Rupee’s devaluation does not have to help India’s economy, so I am glad that our devaluation is much less than competing farms,” ​​the minister said. He attributed the recent impairment pressure to world factors, including strong economic indicators in the United States and persistently high US interest rates. “In the world, the strongest growth of the United States and their focus is on to build their growth history much faster, there has been a capital flight with America. The interest rates in the United States remain very high. Given this situation, the US dollar became stronger, “he explained.
However, the saying stressed that the performance of India’s currency should be compared not only for the US dollar, but also for other developing markets. “Indian Rupee is one of the best currencies among developing market farms. About half of our devaluation is in percentage. We have seen about 2.5-3%.
Goyem also mentioned that the devaluation of Rupees has slowed down significantly in recent years. “If you are studying the devaluation of Rupees by 2014, you will see a nice story since 2014. In 1947-12, about 5.5% depreciated every year, “he said.
Indian rupee has been faced with enhanced instability in recent weeks, which is marked with a sharp 57 drams, reaching 86.62 / US dollars on January 28, 2025, is its daily everyday decline. This decline, followed by February 3, 87.29 / US dollars, in particular the new US tariffs on China, Canada and Mexico, which have caused a risky mood.
FY25 foreign portfolio investors (FPI) have dragged $ 11 billion in Q3 FY25, while debt leaks have increased as US-India’s yield spread in two decades. India’s Reserve Bank (RBI) has reduced its Forex interventions, allowing Rupees to move freely, and from September 20, 2024 increased by 6.5%, 6.5% increase in market currencies. including Inr.
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