Kolkata, April 8: The Indian Rupee is expected to stabilise in the range of 92–93 against the US dollar in the near term, according to S Mahendra Dev, Chairman of the Economic Advisory Council to the Prime Minister (EAC-PM).
Speaking at an interactive session hosted by the Bharat Chamber of Commerce, Dev noted that recent pressure on the Rupee was driven by global uncertainties, including geopolitical tensions and the withdrawal of foreign institutional investors (FIIs).
He, however, expressed confidence that easing global tensions—particularly following the recent US-Iran ceasefire—would help improve investor sentiment and stabilise currency markets.
“The Rupee is stabilising at 92–93. Despite global headwinds and FII outflows, there is no need for concern,” Dev said.
The Rupee had recently weakened beyond the 95 mark against the US dollar amid heightened volatility in global markets.
Strong Fundamentals Support Outlook
Dev highlighted India’s economic resilience, citing strong macroeconomic fundamentals and prudent fiscal management as key factors enabling the country to withstand external shocks.
He emphasized that India retains the capacity to sustain capital expenditure and social welfare spending even during periods of global uncertainty—an advantage not shared by many economies.
Structural improvements such as a better debt-to-GDP ratio, ongoing reforms, and technological progress are also expected to support private investment and long-term growth.
Current Account and Growth Outlook
According to Dev, India’s current account deficit remains manageable, currently around 1.3% of GDP, with room to expand up to 2% without significant concern.
He also endorsed the Reserve Bank of India decision to keep policy rates unchanged, calling it appropriate under current conditions.
On growth, Dev expressed optimism that India could achieve around 7% economic growth in 2026–27, slightly above the central bank’s projection of 6.9%, citing sustained economic momentum and improving investment prospects.
The outlook reflects confidence that India’s economy remains on a stable growth trajectory despite global uncertainties.
