India's rupee drops over 7% as Citigroup expects tighter rules
India's rupee has dropped over 7% against the US dollar this year, making it Asia's weakest currency in 2026.
With rising oil costs and more money leaving the country, experts at Citigroup think the government might soon tighten rules, like limiting how much Indian businesses can invest abroad or asking exporters to bring back their foreign earnings faster.
Citigroup suggests import taxes for India
Citi analysts suggest India could hike import taxes on things like edible oils, encourage banks to borrow from overseas, and encourage inclusion in the Bloomberg Bond Index to attract investors.
The government already raised fuel costs and made exports tougher in May, but while these moves might help short term, Citi warns they could make international investors a bit wary in the long run.
The Reserve Bank of India hasn't weighed in yet.