India's Economic Fundamentals Strong, Rupee Stable - Official Report

Rupee Performance Amid Global Uncertainty​

New Delhi, March 30 – Finance Minister Nirmala Sitharaman stated on Monday that India’s economic fundamentals remain robust, and the Indian rupee is performing well against the US dollar when compared to other emerging market economies.

Rupee Depreciation and Global Trends​

Since the outbreak of the West Asia conflict on February 28, 2026, the Indian rupee has depreciated by 4.1 per cent, closing at Rs 94.82 per USD on March 27, 2026. Minister of State for Finance Pankaj Chaudhary explained that the value of the rupee is determined by market forces and influenced by various factors.

Comparative Currency Performance​

In a written reply, Finance Minister Sitharaman indicated that the rupee depreciation is not unique to India. Several other Asian currencies have also experienced declines against the US dollar since the beginning of the West Asia conflict. Specifically, the South Korean Won depreciated by 4.6 per cent, the Thai Baht by 5.5 per cent, and the Philippine Peso by 4.8 per cent against the USD.

Economic Stability and Inflation​

The Finance Minister emphasized India’s strong fiscal position, solid foreign exchange reserves, and effective fiscal deficit management. She noted that inflation in India has eased significantly. The average retail inflation declined from 6.2 per cent in 2020-21 to 4.6 per cent in 2024-25 and further to 1.9 per cent in 2025-26 (April-February). Prices of most essential commodities have remained stable or exhibited a decreasing trend.
The government and the Reserve Bank of India (RBI) are closely monitoring the rupee’s value.