The RBI has tightened foreign-exchange derivative rules and introduced a special window for oil-marketing companies to ease pressure on the rupee
Restrictions on derivatives may curb speculation but could also hurt businesses hedging currency risks. The measures offer temporary relief without addressing underlying pressures
India's foreign-exchange reserves reached a record $785.7 billion in early September but fell by over $51 billion by October 2, indicating significant currency-market intervention
India faces pressure on both current and capital accounts. Capital outflows have contributed to BoP deficits, while FCNR (B) inflows may provide only temporary support
Allowing the rupee to depreciate could help correct external imbalances. However, exporters must be able to leverage a weaker currency for meaningful economic gains
Trade and tariff reforms, alongside policies to attract foreign direct investment, are essential to strengthen India's external position and support sustainable long-term growth