Should India Worry About A Falling Rupee? Chief Economic Advisor Nageswaran Answers

In a wide-ranging conversation with India Today, Chief Economic Adviser Dr V. Anantha Nageswaran addresses concerns around the weakening rupee and whether India has reached a trade-off point where depreciation hurts more than it helps. Responding to questions on export competitiveness versus rising import costs, the CEA explains why, on balance, India continues to benefit from a weaker currency, particularly given its manufacturing ambitions and evolving trade structure. Dr Nageswaran notes that while unavoidable imports such as crude oil and fertilisers do become costlier, the broader macroeconomic impact remains manageable. He highlights how a weaker rupee can discourage non-essential imports like gold, while also boosting export competitiveness. Emphasising that the current currency movement is part of a global trend driven by dollar strength, he underlines that India’s strong foreign exchange reserves, diversified export destinations and policy preparedness provide adequate buffers