Effect of Depreciation of Rupee On Foreign Exchange Reserves & Economy
The Indian Rupee depreciated by 9% in FY 2025-26, but the country's foreign exchange reserves increased to USD 709.8 billion as of March 2026. The Government of India emphasized strong macroeconomic fundamentals and is pursuing policy measures to ensure stability and reduce dependency on foreign currencies.
The Indian Rupee depreciated by 9% in FY 2025-26. Despite this, the country's foreign exchange reserves increased to USD 709.8 billion as of March 2026. The Reserve Bank of India intervened in the foreign exchange market to curb excessive volatility. The Government of India emphasized strong macroeconomic fundamentals, including robust GDP growth above 7%. Policy measures are being pursued to ensure stability and reduce dependency on foreign currencies.
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