Rupee Fall Against US Dollar Is A Global Trend, Says FinMin Quoting Ex-RBI Governor

Union Finance Minister Nirmala Sitharaman quoted former Reserve Bank of India Governor Raghuram Rajan in Parliament, stating that the recent depreciation of the Indian Rupee against the US Dollar is part of a broader trend, driven by the strengthening of the US Dollar against many global currencies. The minister stressed that this issue is primarily linked to the rise of the US Dollar, rather than a specific concern with the rupee itself.

Managing Inflation

Speaking at the Parliament Budget Session, Sitharaman stated that managing inflation is the government’s top priority. She also highlighted that overall retail inflation remains within the notified tolerance band of 2 per cent-6 per cent.

Sitharaman highlighted that food inflation seems to be moderating in the current fiscal year. She assured the House that the government is closely monitoring various factors to ensure food materials are distributed at affordable rates. She explained that food inflation, which had been impacted by adverse weather conditions and supply chain disruptions, has been addressed, and efforts to manage it continue.

Also Read: What Caused The Stock Market Bloodbath Today? Sensex Crashes Over 1,100 Points, Nifty Tests 23K

Capital Expenditure

The Finance Minister further reassured the House that capital expenditure allocations have not been reduced but have increased. She stressed the significant funding allocated to key sectors such as agriculture, rural and urban development, transport, health, education, and defence, stressing that no funds are being withheld from capital expenditure accounts.

She also added, “I am very grateful that members have chosen to get into the details of the Budget. This Budget has come at a time of immense uncertainties, and the change in global macroeconomic environment makes it challenging. So, if there are challenges which have actually made the Budget preparation with a lot more uncertainties, I have to at least put in front of the August House, that there are issues which are of global concern, which also have an impact on our own Budget making.”