The decline of the rupee against the US dollar is not exceptional and the currency is performing relatively well, economic affairs secretary Shaktikanta Das said on Thursday, reiterating that India’s economic growth is robust despite turmoil in global financial markets.
While the rupee had declined by 6.5% against the US dollar since April 1, 2015, it has actually risen against the euro and yen while holding its own against the pound sterling, he said.
Downplaying weakness in stocks, which have wiped out gains since Prime Minister Narendra Modi won power in May 2014, Das said Indian markets were performing relatively well compared to other global markets. “Over the last few days, the NSE and BSE have experienced a lot of volatility. The decline in our markets is comparable to the rest of the world. India is not an exception, but is better off than many other markets,” he said.
Attributing the plunge in the stock markets to global factors, he said government was prepared to deal with the challenges and stressed that 7.6% GDP growth projected by the Central Statistical Office for the current fiscal year was “noteworthy and very significant”.
On Thursday, the rupee closed at a 29-month low of 68.30, down 45 paise from the previous close. The Sensex crashed 807 points to drop below the 23,000-mark, as concerns rose over the global economy and mounting bad loans in India.