Growth Over Currency: Sanyal Says Rupee Slide Doesn’t Signal Economic Distress

Sanjeev Sanyal, member of the Economic Advisory Council to the Prime Minister (EAC-PM), has downplayed concerns over the recent slide of the Indian rupee, which breached the ₹91 per US dollar mark earlier this week. Speaking at the Times Network’s India Economic Conclave 2025, Sanyal emphasized that the rupee’s weakness should not be conflated with economic distress.

He explained that exchange rate depreciation is often observed in economies experiencing high growth, citing examples of Japan and China during their expansion phases. According to Sanyal, India’s fundamentals remain strong, and the Reserve Bank of India (RBI) continues to intervene only to curb excessive volatility, not to artificially fix the currency’s level.

Sanyal also highlighted India’s ongoing trade negotiations with the US and EU, stressing that the country’s focus should remain on structural reforms and long-term growth drivers rather than short-term currency fluctuations.

Key Highlights

Rupee breached ₹91/$, sparking debate.

Sanyal’s stance: Weakness is natural in growth phases.

Global parallels: Japan & China saw similar trends.

RBI role: Intervenes only to manage volatility.

Policy focus: Trade deals, reforms, growth trajectory.

Why It Matters

Sanyal’s remarks reassure markets that rupee weakness is not alarming, reinforcing confidence in India’s growth story and macroeconomic resilience.

Sources: Business Today, Rediff, Moneycontrol/PTI, Economic Times