Shrinate noted that when the BJP came to power in 2014, the rupee hovered around ₹58.86 against the US dollar. A breach of 90 today, she said, reflects what she described as failed economic management and diplomatic shortcomings. She claimed that foreign portfolio investors have continued to pull capital out of Indian markets, with roughly USD 23.5 billion—around ₹2 lakh crore—exiting the country in 2025 alone.
According to Shrinate, the withdrawal has accelerated amid uncertainties surrounding US tariffs and the absence of a new trade agreement, factors she believes have further weighed on India’s currency. She also pointed to India’s rising import bill: between April and October 2025, the country imported goods worth approximately USD 650 billion—nearly ₹58 lakh crore—representing a 10 per cent increase over the previous year. A weaker rupee, she warned, will inflate this burden even more.
Shrinate cautioned that the depreciation will directly impact household budgets. Higher import costs are expected to push up fuel prices and other essential commodities, which could feed into inflationary pressures. In such circumstances, the Reserve Bank of India may be compelled to raise interest rates, making loans and EMIs costlier for consumers. The financial strain, she added, will extend to Indians studying, travelling, or living abroad, all of whom will now face higher expenses due to the currency’s slide.
She further criticised what she called the government’s attempt—supported by “pliant economists” and sections of the media—to normalise the rupee’s fall, insisting that India now has one of the poorest-performing currencies in Asia. The government has not yet issued a formal statement reacting to her claims, but officials are expected to cite global headwinds and geo-economic uncertainties as major contributors to currency volatility.
As the exchange rate continues to test new lows, the debate has shifted beyond political fault-finding to questions about India’s external stability, investment climate and long-term economic resilience. With inflation risks resurfacing and investor sentiment under strain, the rupee’s downturn may become a defining economic narrative in the months ahead.
About The Author
Comment List