Sajjid Chinoy Of JP Morgan Explains Why Weak Rupee Doesn't Mean Weak Economy

JP Morgan's Chief India Economist, Sajid Chinoy explains why the weakening rupee may not be the negative story many assume. He argues that a strong currency does not equal a strong economy, and historically, nations that achieved rapid growth did so by keeping their currencies competitive to boost exports. A weaker rupee helps Indian goods become cheaper globally, while making imports more expensive, supporting domestic manufacturers. With U.S. tariffs on Indian products at 34% vs 16% for ASEAN competitors, depreciation helps level the playing field. It also counters cheap Chinese imports, protecting Indian industries and job creation. Chinoy stresses that depreciation must be calibrated—not feared—and challenges the misconception that a record-low rupee signals economic weakness.