Finance Minister Nirmala Sitharaman quoted former RBI governor Raghuram Rajan to explain the fall in the value of the rupee. She said that the currency volatility across major countries is reaqlly extensive and that the dollar index rose 6.5% from October last year till January this year.
"Former RBI Governor Rajan, who even participated in the Bharat Jodo Yatra, has acknowledged on Jan 15,2025 that fixation is always with the rupee-dollar exchange rate, reality is dollar has been strengthening against many currencies including the Euro... So it is really a dollar issue," the FM said while addressing the Lok Sabha.
Rajan, in an interview to Mojo, spoke about the strengthening dollar as the reason for the fall in rupee's value. He said that the slide in rupee is moderate as compared to some of the other currencies and that the depreciation isn't that much if one were to look at the real effective exchange rate.
Sitharaman spoke about inflation, jobs, debt consolidation and a number of other issues concerning the Indian economy.
"We are taking measures to reduce debt since 2021 and to make public money go for productive asset building activities," the FM said on debt consolidation.
She added that not just the Centre, even states will also have to look at the debt consolidation. On capex, the FM said that the states are speedily coming up with proposals which will help the Centre in supporting the states on capex.
Terming inflation management as the highest priority of this government, the FM said that the overall retail inflation is within the RBI's tolerance band of 2-6%.
The minister said that food inflation which was impacted by adverse weather conditions or supply chain disruptions has all been attended to, and we are continuing to do it.
The FM said that the main goals of the Budget are to accelerate growth, invigorate private investment, promotion of MSMEs, employment led development.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!