FX movement
Government closely tracking exchange rate movement, impact on economy - Sitharaman
This story was originally published at 14:27 IST on 21 July 2026
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NEW DELHI – The government is closely monitoring the foreign exchange rate movements and its implications on the country's economic growth and fiscal stability, Finance Minister Nirmala Sitharaman Tuesday said in her reply to a question in the Rajya Sabha. "These issues are discussed at various fora at various levels of the government," she said.
In response to a different question on the issue of falling value of Indian currency, Minister of State for Finance Pankaj Chaudhary said, "Key external debt vulnerability indicators are benign and indicate that India's external debt levels remain sustainable and prudently managed. India's external sector continues to be supported by adequate reserve buffers."
India's foreign exchange reserves were $671.6 billion as of Jun. 12. The government sees it adequate in terms of the standard metrics of reserve adequacy, including providing an import cover of 10.3 months of goods and covering 88% of the country's external debt outstanding as of end-March, he said.
As of end-March, the country's external debt stood at $762.8 billion, marginally up from $736.4 billion a year ago. "The debt service ratio has declined from 6.6 as of end-March 2025 to 5.8 as of end-March 2026," the minister said.
The rupee has depreciated around 5.7% against the dollar since the beginning of the war in West Asia. The rupee fell from 90.975 per dollar on Feb. 27 to 96.16 a dollar currently. End
US$1 = INR 96.16
Reported by Shweta
Edited by Akul Nishant Akhoury
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