Nirmala Sitharaman / Sitharaman gave this big statement on the falling rupee, what is the whole plan?

Nirmala Sitharaman: Two major issues are in the headlines these days in the Indian economy: the continuous decline in the Indian rupee against the US dollar and the ongoing discussion on GST reforms. Meanwhile, the country's Finance Minister Nirmala Sitharaman has given a big statement on the fall of the rupee, in which she mentioned the government's vigilance on this issue and the efforts being made to reduce the impact on exporters. Let us know about this topic in detail.

Rupee falls by more than 4%

The performance of the Indian rupee has been very weak against the dollar in the current year. The rupee closed with a marginal gain of three paise at 88.09 per dollar in the interbank foreign exchange market on Friday. However, a day before this it was at 88.12 and on September 2 it reached its lowest level ever at 88.15. On the last trading day of last year, the rupee was at the level of 84.60, which has now come down to 88.09. This means that the rupee has already depreciated by Rs 3.50 or 4.12%. According to some experts, the Indian rupee has become one of the worst performing currencies in the whole of Asia.

Finance Minister's statement

On the fall of the rupee, Finance Minister Nirmala Sitharaman said, "We are keeping a close watch on this situation. This fall is not limited to the Indian rupee only, but the currencies of other countries are also affected by it." She also clarified that this fall is only in terms of the dollar. On the impact on exporters, especially due to US tariffs, she said that the government and the concerned ministries are actively working in this direction.

Sitharaman said that the 50% duty implemented from August 27 may affect sectors like shrimp, gems and jewellery, and textiles. She said, "It is not yet clear from the industries how much impact this duty will have. The concerned ministries and departments are collecting information about this from the exporters, and on the basis of this the government will formulate further strategy." It is noteworthy that the US has imposed an additional 25% duty on India for buying crude oil from Russia, taking the total duty to 50%.

Efforts to access the Chinese market

The Finance Minister also talked about trade relations with China. He said that India is constantly trying to increase its access to the Chinese market and talks are going on in this direction. He clarified that this is a purely trade dialogue and has nothing to do with Press Note Three. Let us tell you that under Press Note Three, India changed its FDI policy in April 2020, under which government approval was made mandatory for investment from border countries including China.

Discussion on GST reforms

Along with the fall of the rupee, GST reforms are also being discussed vigorously in the country. The government is taking several steps to further simplify the GST framework and curb tax evasion. Although GST reforms have not been discussed in detail within the scope of this article, it is clear that the government is making every effort to promote economic stability and exports.