Indian Rupee Expected to Stabilize at 92-93 per Dollar, Says Economic Advisory Council Chairman
Rupee likely to stabilise at 92-93 per dollar, says EAC-PM chairman
Business Standard
Image: Business Standard
S Mahendra Dev, chairman of the Economic Advisory Council to the Prime Minister of India, forecasts that the Indian rupee will stabilize around 92-93 against the US dollar. He attributes recent fluctuations to geopolitical tensions and foreign investment trends but expresses confidence in India's economic resilience and potential GDP growth of 6.9% this financial year.
- 01The Indian rupee is expected to stabilize at 92-93 per dollar.
- 02Geopolitical tensions, particularly in West Asia, have impacted the rupee's value.
- 03India's economic fundamentals are strong, with low debt-to-GDP and fiscal deficit ratios.
- 04The Reserve Bank of India projects a GDP growth of 6.9% for the current financial year.
- 05S Mahendra Dev believes that if conditions improve, a 7% growth rate is achievable.
Advertisement
In-Article Ad
S Mahendra Dev, chairman of the Economic Advisory Council to the Prime Minister of India, stated that the Indian rupee is stabilizing and could settle around 92-93 against the US dollar. His comments came during a session on India’s macroeconomic challenges and opportunities in Kolkata. The rupee faced pressure due to the ongoing US-Israel-Iran conflict and fluctuations in foreign institutional investment (FII) and foreign direct investment (FDI) flows. Despite these challenges, Dev expressed confidence in the Indian economy's resilience, citing strong macroeconomic fundamentals and fiscal management. He noted that India has a low debt-to-GDP ratio and fiscal deficit, which positions it better than many other countries. The Reserve Bank of India projected a GDP growth of 6.9% for the current financial year, which Dev described as reasonable, suggesting that a growth rate of 7% is also attainable if conditions improve. Overall, he reassured that there is no need for concern regarding the rupee's stability.
Advertisement
In-Article Ad
The stabilization of the rupee could lead to more predictable pricing for imports and exports, benefiting businesses and consumers alike. A stable currency may also encourage foreign investments, which can create jobs and enhance economic growth.
Advertisement
In-Article Ad
Reader Poll
Do you believe the Indian rupee will stabilize as projected?
Connecting to poll...
Read the original article
Visit the source for the complete story.