Commerce and Industry Minister Piyush Goyal addressed the media at the India Today-Business Today Budget Round Table 2025, emphasizing that any depreciation in the rupee is harmful to the economy. However, he stressed that when compared to other emerging market currencies, India's rupee has shown a more controlled decline, depreciating at roughly 2.8-3% as opposed to 5.5-6% seen in other nations. This performance, he argued, highlights the relative strength of the rupee amid a challenging global financial environment.
Goyal elaborated on the necessity of maintaining a strong currency for an import-dependent country like India. He noted that past trends reveal a favorable shift, with the rupee's annual depreciation rate dropping from about 5.5% before 2014 to around 2.5% in more recent years. This change signifies a broader trend toward improved currency management and stability.
He further attributed recent fluctuations in the rupee to various external pressures, including strong economic performance in the United States, high US interest rates, and a significant capital outflow towards the dollar. The global economic environment, marked by escalating trade tensions and a dip in investor confidence, has resulted in notable volatility in the rupee, as seen with its steep fall and subsequent low levels in early 2025.