“Nothing to worry about Rupee depreciating against major world currencies”: Former Niti Aayog Vice Chairman

India’s recent rupee depreciation should be viewed as an opportunity to strengthen the nation’s economic engine, not as a setback, former Niti Aayog Vice Chairman and noted economist Rajiv Kumar said on Tuesday.

Amid heightened market chatter over the currency breaching the psychological 90-per-dollar mark during intraday trade, Kumar urged policymakers and the public to rethink long-held assumptions about what constitutes economic strength.

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Rajiv Kumar says weakening rupee could improve Indian economy

In a post on X, Kumar stressed that the weakening rupee could, in fact, bolster the country’s economic prospects.

According to him, a softer currency encourages labour-intensive exports, an area where India holds competitive potential while simultaneously increasing foreign exchange earnings.

Together, these factors can generate much-needed employment and support broader economic growth.

“Nothing to worry about rupee depreciating against major world currencies,” Kumar wrote, arguing that the idea of a ‘strong rupee’ as a symbol of national strength is outdated.

“In fact it good for the economy as it encourages labour intensive exports from India, increases foreign exchange earnings and generates more jobs,” he remarked.

The "macho rupee syndrome"

He called for abandoning what he described as the “macho rupee syndrome,” urging a shift in public perception that he believes has long been counterproductive.

The rupee, which opened at 89.70 at the interbank foreign exchange market on Tuesday, slipped further to hit a record intraday low of 90.00 against the US dollar before settling at 89.96, down 43 paise from the previous close.

Analysts attribute the movement largely to persistent importer demand for dollars and short-covering by speculators.

Nothing to worry about Rupee depreciating against major world currencies. In fact it good for the economy as it encourages labour intensive exports from India, increases foreign exchange earnings and generates more jobs. High time that a so called ‘strong Rupee’ is seen as the… https://t.co/FJk96VOt91

— Rajiv Kumar (@RajivKumar1) December 2, 2025

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