Rupee's Record Low: A Wake-Up Call for India's Economic Strategy
The Indian rupee's slide to an all-time low of 84.13 against the US dollar raises significant concerns about the underlying health of the Indian economy and its ability to withstand global financial pressures. This decline, driven by persistent foreign portfolio investor (FPI) sell-offs, not only signals weakening confidence in the market but also highlights broader economic vulnerabilities. The massive FPI outflow in October, amounting to ₹94,000 crore, underscores a critical challenge for India: maintaining its appeal as an investment destination. With high domestic valuations and rising inflation, investors are increasingly turning to more promising opportunities elsewhere, particularly in China. This trend should serve as a wake-up call for policymakers to reassess strategies to make India more competitive on the global stage. The Reserve Bank of India's intervention has offered some respite, yet its reactive dollar-selling strategy points to a delicate balancing act. On o...