The Department of Economic Affairs (DEA) and the Reserve Bank of India (RBI) are maintaining a high level of vigilance over the movement of the Indian rupee and the fluctuating prices of gold and silver to ensure macroeconomic stability.

DEA Secretary Anuradha Thakur confirmed that the government, in coordination with the central bank, is closely tracking these developments and stands ready to deploy necessary regulatory instruments as required.

Describing the management of the rupee's value as a "delicate exercise," the Secretary emphasized that the primary goal is to safeguard the economy from external shocks while utilizing the legal and regulatory frameworks already in place.

Addressing the broader economic landscape, the Secretary highlighted that the latest Union Budget serves as a foundational blueprint for sustainable, long-term growth, particularly through a renewed push for the manufacturing sector.

She noted that initiatives such as Semiconductor Mission 2.0 and the establishment of rare earth corridors represent a strategic vision that builds upon the progress made since 2014 through the 'Make in India' and Production-Linked Incentive (PLI) schemes.

According to the DEA chief, these measures are being implemented in close partnership with the private sector, spanning various developmental projects like medical hubs and university townships to bolster the country’s industrial capacity.

Regarding recent volatility in the equity markets and the outflow of Foreign Portfolio Investments (FPI), the Secretary expressed firm confidence in a market recovery.

She characterized the current capital movement as a cyclical phase driven by global profit-booking and higher international interest rates, rather than a reflection of India’s internal economic health.

By laying out concrete steps for medium- and long-term expansion, she argued that the Budget has created an environment where the market will eventually stabilize and continue its upward trajectory, underpinned by India's robust growth prospects.

Source: ANI