New Delhi, March 30
Finance Minister Nirmala Sitharaman has told Parliament that India’s economic fundamentals remain strong and said the rupee is “absolutely going fine” against the US dollar, despite a sharp fall since the start of the West Asia conflict. Replying to a supplementary question in the Lok Sabha on Monday, Sitharaman said India’s economy, fiscal position and foreign exchange reserves remained robust, adding that the country’s handling of its fiscal deficit was being praised globally.
She said the rupee’s weakness was not unique to India, arguing that several Asian currencies had fallen even more against the dollar since the conflict began on 28 February 2026. According to her written reply, the rupee has depreciated 4.1% since the start of the conflict, ending at Rs 94.82 against the US dollar on 27 March. Over the same period, the South Korean won, Thai baht and Philippine peso fell by 4.6%, 5.5% and 4.8% respectively. Minister of State for Finance Pankaj Chaudhary said the rupee’s value was determined by market forces and influenced by a range of global and domestic factors, adding that both the government and the Reserve Bank of India were closely monitoring the currency.
He also said inflation had eased significantly, with average retail inflation falling from 6.2% in 2020-21 to 4.6% in 2024-25, and further to 1.9% in 2025-26 between April and February. Chaudhary said prices of most essential commodities had either remained stable or shown a downward trend.
The rupee has fallen 9.9% against the dollar in the current financial year up to 27 March 2026.
