New Delhi, Dec 4 During Zero Hour in the Rajya Sabha on Thursday, Congress MP from Madhya Pradesh Vivek Tankha voiced deep concern over what he described as the “freefall of the Indian rupee” and the widening economic distress affecting ordinary citizens across the country.
Calling the issue “extremely topical and urgent”, Tankha said the currency’s sharp decline was inflicting widespread financial strain on households, businesses and key sectors of the economy.
Tankha noted that the rupee had crashed past Rs 90 per US dollar -- touching between 90.14 and 90.19 -- marking the weakest level in India’s history. Over the past five years, he said, the rupee has lost between 20 per cent and 27 per cent of its value, effectively reducing the purchasing power of people’s income by nearly one fourth. In global terms, the rupee has fallen 5 per cent this year alone, its steepest drop since 2022, making it one of Asia’s worst-performing currencies in 2025.
He further highlighted that India recently recorded a monthly trade deficit exceeding USD 40 billion, underscoring how sharply imports outweigh exports. At the same time, foreign investors have withdrawn more than USD 17 billion from Indian markets this year -- the largest outflow in several years -- drying up capital and weakening investor sentiment.
“FDI flows are stagnant, external borrowings have slowed, and the world is becoming increasingly wary of India’s external stability,” Tankha warned.
Emphasising the direct impact on citizens, he said that every bout of rupee depreciation makes imports costlier, and India relies heavily on imported fuel, cooking gas, electronic machinery and medicines. A 5 per cent fall in the rupee, he explained, pushes inflation up by 30-35 basis points.
“Every household ends up paying more. Food prices rise, transport costs increase, and a chain reaction follows that hits the poor the hardest,” he said.
The middle class, he added, is also feeling the squeeze as the prices of smartphones, laptops, medical equipment, school supplies, clothing and household appliances rise due to India’s dependence on imported components.
“For the common person, a falling rupee feels like a salary cut without the employer informing you. Your money buys less every day,” he remarked.
Tankha also drew attention to the pressure on Micro, Small and Medium Enterprises (MSMEs), many of which rely on imported raw materials. These businesses are facing a 20-30 per cent rise in input costs, shrinking already thin margins.
Machinery imports have become more expensive, slowing expansion and putting jobs at risk. Exporters, he said, are not gaining from the weaker rupee because major export sectors -- such as textiles, chemicals and engineering goods -- depend heavily on imported intermediaries.
“Small manufacturers are caught in a double blow: higher costs and weaker demand,” he said.
Companies with foreign currency loans are also struggling, with repayment costs rising by 15-20 per cent due to the rupee’s depreciation, weakening corporate balance sheets and threatening financial stability.
A falling rupee, Tankha added, discourages overseas investors, creating a “vicious cycle” where declining confidence further accelerates currency pressure. “As the rupee falls, investors pull out, and markets shift,” he cautioned.
Tankha urged the government to recognise the seriousness of the situation and take urgent corrective measures to stabilise the currency and safeguard vulnerable sectors of the economy.
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