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India’s macroeconomic fundamentals remain strong despite global headwinds: Pankaj Chaudhary

29 Jul 2026 Evaluate

Highlighting India’s strong macroeconomic fundamentals, Union Minister Pankaj Chaudhary has said the Indian economy remains resilient with real GDP expanding at over 7 per cent annually over the past three years, supported by robust domestic demand, healthy corporate balance sheets, and sustained fiscal discipline despite global headwinds. He also cited the RBI’s Financial Stability Report (June 2026), which noted that the domestic financial system continues to remain resilient, underpinned by strong balance sheets across banks and non-banking financial institutions.

Referring to the impact of global developments on the Indian currency, Chaudhary said “As a major player in global markets, India’s economy is closely linked with international trends, which influence exchange rate movements. Since the onset of the West Asia conflict, the Indian Rupee (INR) has depreciated by 5.8 per cent against the US Dollar (USD) in FY27 (from February 27 to July 22, 2026).” 

He further noted that high-frequency indicators for the first quarter of FY 2026-27 point to sustained momentum in economic activity and domestic demand, reflecting the continued resilience of the Indian economy. The Index of Industrial Production (IIP) registered year-on-year growth of 4.9 per cent in April 2026 and 5.1 per cent in May 2026, indicating that investment-led industrial growth has remained on track despite elevated global uncertainty.

He said “Industries dependent on imported inputs may face cost pressures. To support stability, the Government is mitigating import-led inflation through duty adjustments, expanding credit access for MSMEs, ensuring affordable financing, attracting long-term foreign direct investment (FDI), promoting trade facilitation and digital platforms, and advancing free trade agreements.”

He also reiterated that the value of the Indian Rupee is market-determined and is not managed within any target, specific level, or trading band. He said the Reserve Bank of India (RBI) continuously monitors developments in the foreign exchange market and intervenes whenever required to address excessive volatility. In addition, the RBI closely tracks global developments that could have an impact on the USD-INR exchange rate.

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