Migration of rich Indians putting pressure on rupee: Prakash

Prominent Dalit leader Prakash Ambedkar claimed Saturday that migration of high net worth individuals from the country for fear of harassment by the authorities is responsible for the slide of the rupee.

If the trend continues, the rupee will fall to the level of 75 against the US Dollar, he said, addressing a press conference here.

The Indian currency traded at 71.73 against the dollar Friday.

"Due to fear of prosecution, tyranny and the threat of being arrested by the ED (Enforcement Directorate) or any other criminal law (agency), nearly 4,000 families left in 2015, nearly 6,000 in 2016, and nearly 7,000 families migrated from India to other parts of the world in 2017," he said.

In 2018, this figure will be many times higher, Ambedkar, who heads Bharipa Bahujan Mahasangh, claimed.

This class of individuals accounts for almost half the wealth in the country, and when such families leave, they convert their money into a foreign currency, he said.

"As dollar is an international currency and accepted all over the world, these high net worth individuals are on a buying spree which is putting pressure on demand and supply of dollar. As the dollar is being purchased, and it is in short supply, the demand has risen," Ambedkar argued.

If this trend continues, the exchange rate could jump to 75 rupees per dollar which will in turn push up retail prices, he claimed.