Rupee Decline May Not Be Bad For Economy Now

By Nantoo Banerjee It does not make sense for India to deplete its hard-earned foreign currency reserves to temporarily protect the Rupee’s exchange value. In fact, Indian Rupee’s downturn vis-à-vis other major currencies has not adversely impacted the country’s impressive economic growth, at least for the present. On the contrary, it has made exports cheaper and imports dearer. This should help the country reduce its overall large annual trade deficits although increasing imports of cheap non-essential items from China continues to be a major concern. The country’s export growth in 2025 shows positive momentum, with significant year-on-year jumps in late…