New Delhi, April 24 India’s currency may be under pressure in the short term, but its long-term story remains compelling, Chief Economic Adviser V. Anantha Nageswaran has said, describing the rupee as “fundamentally undervalued” and an attractive opportunity for investors.
Speaking to Bloomberg, Nageswaran said the current valuation of the rupee offers a strong entry point, particularly for long-term investors looking at India’s growth potential.
His remarks come at a time when the currency has been facing sustained pressure due to global headwinds.
The Indian rupee continued its losing streak for the fifth straight session on Friday, slipping 24 paise to 94.25 against the US dollar in early trade.
The decline comes as Brent crude prices stayed above $100 per barrel, driven by ongoing tensions in the Middle East that have disrupted energy supplies and raised concerns over inflation.
The currency’s weakness has been further exacerbated by foreign investor sentiment.
Heavy outflows from Indian equities have added to the downward pressure, with foreign portfolio investor (FPI) exits already surpassing last year’s record annual outflow of $18.79 billion earlier this month.
So far in 2026, the rupee has emerged as Asia’s worst-performing currency, extending losses from the previous year.
Analysts attributed this trend to India’s heavy dependence on energy imports, making it particularly vulnerable to global oil price shocks amid geopolitical conflicts.
Despite these challenges, policymakers remain cautiously optimistic about the country’s economic outlook.
Sanjay Malhotra recently said that growth could reach 6.9 per cent in the current financial year, even as some economists have trimmed their forecasts following the escalation in geopolitical tensions.
Earlier this month, Nageswaran had also warned that rising oil prices could weigh on the global economy and that normalisation may take longer than expected.
Addressing a conference organised by the US-India Strategic Partnership Forum, he highlighted four key channels through which the ongoing conflict could impact economies: elevated energy prices, disruptions in commodity supplies, higher logistics and insurance costs, and a potential decline in remittance flows.
He added that patience would be necessary as the global situation evolves, noting that a return to normal economic activity could take time.
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