Finance Ministry: Rupee REER hits decade low, boosting India exports
Business
India's exports just got a boost, thanks to the rupee's Real Effective Exchange Rate (REER) dropping to its lowest in over a decade.
According to the Finance Ministry's May 2026 review, a REER of 92.72 (well below the standard 100) means Indian goods and services are now more affordable for global buyers.
Indian economy solid despite import risks
The ministry points out that a weaker rupee isn't bad news: India's economy is still solid with more than 7% GDP growth, $697 billion in foreign reserves, and $94.5 billion in FDI inflows in FY26.
While a falling rupee usually helps improve trade balance, rising costs for oil and other imports could limit how much India benefits right now.