‘Rupee valuation does not reflect stellar economic fundamentals’

The value of the rupee, which has slipped to the 92 per dollar mark, does not accurately reflect India’s stellar economic fundamentals, the Economic Survey said on Thursday.

“In other words, the rupee, therefore, is punching below its weight,” it said, adding investor reluctance to commit funds to India warrants examination at a time when inflation is under control and growth outlook is favourable.

India depends on foreign capital flows to maintain a healthy balance of payments. “The Indian rupee underperformed in 2025. India runs a trade deficit in goods. Its net trade surplus in services and remittances is not enough to offset it... When they run drier, rupee stability becomes a casualty,” said the pre-Budget document tabled in Parliament by Finance Minister Nirmala Sitharaman. The rupee hit an all-time low of 92.00 against the American currency in early trade on Thursday, weighed down by steady dollar demand and a cautious global mood.On Wednesday, the rupee settled 31 paise down, revisiting its lowest-ever closing level of 91.99 against the greenback.