New Delhi, Jan 29 Chief Economic Adviser V. Anantha Nageswaran said on Thursday that the weakness of the Indian rupee compared to the US dollar is not out of line with other emerging market currencies, which are also going through the same geopolitical risks.
Responding to an IANS question in the national capital, Nageswaran said that as the fundamentals continue to display strength and solidity, investors will reappraise their stance towards the Indian currency.
"If we continue on the path of structural reforms, as we have been doing in the last 12 to 18 months, both at the Centre as well as state governments, and Indian exports continue to show growth, that will also further consolidate the revised perceptions on the Indian rupee going forward," the CEA noted.
In the short run, some developments may not be in our control, but more importantly, "the fact that the rupee is not reflecting macro-fundamentals, and the sustained growth rate, will definitely catch the attention of investors and that is when the tide will turn," Nageswaran told IANS during a press conference after the Economic Survey 2025-26 was tabled in the Parliament by Finance Minister Nirmala Sitharaman.
Rupee traded flat to weak near 91.94, down 0.12, on Thursday as markets remained cautious ahead of the Union Budget on February 1. The currency has been under pressure due to elevated bullion prices increasing the import bill, along with continued FII selling in domestic equities.
Nageswaran further stressed that in a world marked by trade fragmentation and geopolitical tensions, countries must focus on domestic capacity building, supply chain resilience, and strategic indispensability in global value chains.
"We are not rich by nature, but can become rich by policy,"” he said, expressing confidence that continued reforms and responsible participation by government, industry, and citizens will help India achieve its long-term development goals.
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