Modi government keeping watch on rupee's fall against dollar: Sitharaman
What's the story
Finance Minister Nirmala Sitharaman has said that the Indian government is closely monitoring exchange rates, especially in light of the rupee's depreciation against the US dollar. However, she clarified that this trend is not unique to India as several other currencies have also fallen against the dollar. The rupee hit a record low amid concerns over US tariffs, including a 50% levy on Indian goods.
Global impact
Rupee slide largely against dollar, says Sitharaman
Sitharaman stressed that the rupee's fall is mainly against the dollar and not other currencies. She attributed this to the global strengthening of the dollar. The Finance Minister said, "The rupee slide is largely against the dollar, not against any other currencies. That's also because of how globally, the dollar has strengthened."
Trade barriers
Rupee hits record low amid US tariff concerns
The rupee fell to a record low and settled at 88.27 against the dollar after hitting an intra-day low of 88.38 on Friday. The fall was witnessed amid concerns over US tariffs, but intervention by the Reserve Bank of India through state-run banks helped limit further losses. The steep tariff of 50% imposed by the US on Indian goods came into effect on August 27, affecting sectors such as textiles/clothing, gems and jewelry, shrimp, leather and footwear among others.
Tax reforms
Sitharaman assures GST rate cuts will be passed on
Sitharaman also spoke about the Goods and Services Tax (GST) rate cuts, saying she will personally monitor their implementation. She said, "I will personally monitor passing on of goods and services tax (GST) rate cuts in the form of price reduction even as some industries have already announced price moderation." The FM called the GST overhaul a 'people's reform,' adding that rationalizing tax rates for a wide range of products will benefit every family and boost consumption.