Brushing aside concerns about the rupee breaching the 100-per-dollar threshold, Shamika Ravi, a member of the Economic Advisory Council to the Prime Minister, said the government's priority should be managing inflation and economic stability rather than defending a particular currency level.
Speaking in an ANI podcast, Ravi said, “So what? 100 is just a number,” stressing that the value of the rupee should not become an end in itself.
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According to her, attempts to artificially maintain a particular exchange rate could trigger inflationary pressures and create broader economic distortions. "You do not want to intervene in a market which is working fine right now," Ravi said, adding that the government's emphasis on fiscal prudence and curbing wasteful consumption is a more effective response to global supply-side disruptions.
She acknowledged that prices may rise as the economy adjusts to external shocks, but maintained that higher prices can help moderate demand in a supply-constrained environment. Ravi noted that India has already begun utilising its foreign exchange reserves to cushion the impact of global volatility and said reserves could continue to be deployed "as long as it is required".
Expressing confidence in India's external position, Ravi highlighted the country's agreement with the UAE, describing it as a significant step towards strengthening long-term energy security and rebuilding foreign exchange buffers.
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Ravi also reiterated her optimism about India's growth outlook, describing the economy as being in a phase of sustained expansion. She argued that India's domestic demand-driven growth model has helped it withstand major global shocks over the past decade, unlike export-dependent economies such as China, South Korea, Taiwan and Vietnam.
She added that fiscal discipline remains central to preserving macroeconomic stability and supporting long-term growth.
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