Rupee Freefall: Nothing to Worry, says Niti Aayog Ex-VC
The Macho Rupee syndrome should be discarded immediately, said former vice chairman of the Niti Aayog on a sharp currency depreciation.
By TRH news Desk
New Delhi, December 2, 2025 — With Rupee in a freefall, touching record low, former vice chairman of the Niti Aayog Rajiv Kumar has said that “India should drop the currency machismo.” He argued that a Rupee depreciation is “good for the Indian economy.”
“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,” argued Kumar in a post on X on Tuesday evening.
CNBC in a report said that “the Indian rupee has dropped nearly 5% against the dollar this year, hitting almost ₹90, per dollar.” “The fall follows record-breaking trade deficit, slowing foreign investment and stalled trade talks with the US,” added the business news channel.
Yet, the ex-VC of the Niti Aayog argued that “…high time that a so called ‘strong Rupee’ is seen as the symbol of economic strength at this stage of the economy… The Macho Rupee syndrome should be discarded immediately.” “Let’s try and change this public narrative which is detrimental to the country,” he added.
Niranjan Rajadhyaksha, an economic commentator, wrote on X on the issue of the currency depreciation that “a more fairly valued currency is not a bad outcome at a time when exports are coming under pressure because of trade uncertainty.”
Paul Koshy, another economic commentator, stated that “India’s foreign exchange reserves saw a decrease of USD 4.47 billion, settling at USD 688.10 billion for the week ending November 21. Gold reserves dropped by USD 2.67 billion, while Foreign Currency Assets also experienced a dip of USD 169 million.”
“The rupee has slipped to a fresh record low of ₹89.78 per dollar, breaking its previous lifetime low of ₹89.49 hit just two weeks ago. India’s exports have been hit hard, particularly its shipments to the United States, due to aggressive tariff hikes, which caused a 28.5% drop in exports to the US between May and October 2025,” added Koshy.
He argued that the “downturn has disproportionately affected labour-intensive sectors like textiles, gems, and leather goods. In October, job postings on hiring and matching platforms were down by 5.6%.” He added that this marks the second consecutive month of decline, leaving postings 19.8% lower than a year ago.
CNBC stated, meanwhile, in its report that “India’s growth story and corporate tax cuts could bring foreign investors back.”
Follow The Raisina Hills on WhatsApp, Instagram, YouTube, Facebook, and LinkedIn
About The Author
