New Delhi [India], January 13 : Bharatiya Janata Party leader Amit Malviya praised the 'resilience' of the Indian rupee, crediting improved economic management under the Modi government for making it "one of the most stable currencies globally."
In a post on X, he wrote, "The rupee today stands among the most stable currencies in the worldand that is no coincidence."
Malviya highlighted key metrics, such as India's "reduced current account deficit, strong foreign exchange reserves, and restrained external debt growth," which he said have contributed to the rupee's stability despite global challenges.
https://x.com/amitmalviya/status/1878794403751588136?s=48
"India's improved external position, reduced current account deficit, and strong foreign exchange reserves have made the rupee one of the most stable currencies globally. Over the past year, even as the US Dollar Index surged by 9.8 per cent, the rupee depreciated by a modest 3.68 per cent, outperforming major currencies like the Japanese Yen and Korean Won, which fell by 9 per cent-12 per cent during the same period," Malviya stated.
The rupee's resilience was even more evident when compared to the UPA government's tenure, he asserted, emphasizing that the Indian currency depreciated by 36 per cent between 2011 and 2013.
Malviya attributed the rupee's vulnerability during the UPA era to "reckless external borrowing," which grew at over 21 per cent annually, leaving the currency "exposed to global shocks."
He contrasted this with the Modi government's "fiscal prudence," which he said, limited external debt growth to just 4.5 per cent annually, ensuring greater economic stability.
Citing the US Federal Reserve's tapering announcements as examples, Malviya pointed out the stark difference in the rupee's response.
In 2013, following the Fed's tapering signal, the rupee depreciated by 14.9 per cent within four months, reflecting what Malviya called "policy paralysis" under the UPA regime. In contrast, after a similar announcement in 2021, the rupee declined by only 0.7 per cent over the same period, showcasing India's stronger economic foundations, he said.
Malviya also highlighted that the rupee has strengthened against non-dollar currencies like the Euro and Canadian Dollar, a scenario he described as "unheard of in 2013." Despite ongoing geopolitical tensions and high US interest rates, India has avoided a currency crisis, a testament to prudent economic management and robust fundamentals, he asserted.
"So, the next time someone paints a grim picture of the Indian rupee, remind them of its disastrous performance under the UPA and the remarkable turnaround under the Modi government. The rupee today stands among the most stable currencies in the worldand that is no coincidence," the BJP leader further added.
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