Union Finance Minister Nirmala Sitharaman addressed concerns surrounding the depreciation of the Indian rupee against the US dollar, highlighting various factors contributing to this trend amidst global economic dynamics.
In response to queries regarding the rupee's decline against the dollar, Minister Sitharaman provided insights into the complex interplay of economic forces impacting currency valuations. She stated, "When the US economy and dollar's position harden, then against that, Rupee in exchange gets volatile. In contrast, the Rupee against the Yen and the Euro; our economic situation, foreign exchange reserve, inflation, and economic strength in terms of growth, due to all these reasons compared to other currencies (Yen, Euro) the Rupee stays stable."
Minister Sitharaman emphasized the relative stability of the rupee against currencies such as the Yen and Euro, attributing this to India's robust economic fundamentals, foreign exchange reserves, and consistent growth trajectory. However, she acknowledged the volatility experienced against the US dollar, a phenomenon not unique to the rupee but reflective of global currency fluctuations.
She elaborated, "However, just against the US dollar, not only the Rupee, but other currencies fluctuate higher... The global uncertainty is rising," pointing to broader global economic uncertainties that impact currency markets worldwide.
Simultaneously, Sitharaman addressed the announcement of Elon Musk postponing his visit to India, originally scheduled for April 21-22. She highlighted India's proactive stance in attracting investments, especially in light of concerns surrounding China's influence on global industries. "When big companies show interest to come to India, we certainly make sure to make it attractive for them to come here and invest," she emphasized.
The Finance Minister reiterated the government's commitment to formulating policies that attract major companies to invest in India. "Especially after China started being a concern for many industries or many experts in domain areas, we have made policies in such a way that we are making India an attractive destination, both for manufacturing and for services," she stated.
Sitharaman's remarks underscored the strategic approach towards economic stability, investment promotion, and addressing global economic challenges. The postponement of Musk's visit was seen in the context of ongoing discussions about incentives for manufacturing in India, reflecting India's efforts to enhance its attractiveness as a preferred investment destination on the global stage.