Rupee at 100 Not a Crisis, Says Ex-NITI Aayog Chief

Arvind Panagariya has downplayed fears surrounding a potential breach of the 100-rupee-per-dollar mark, telling ADT V that panic is unwarranted. The noted economist believes the currency will rebound once worldwide instability eases. He urged the central bank to refrain from excessive market intervention aimed at safeguarding psychological thresholds. Instead, letting the rupee find its natural level would cushion India from external pressures more effectively. Panagariya highlighted the risk that aggressive defence of the exchange rate could drain foreign reserves at a time when global conditions remain fragile. A measured weakening, he maintained, would improve economic efficiency whether the present turbulence is short-lived or enduring. On fuel prices, he said rising global crude costs should gradually pass through to domestic consumers rather than be artificially suppressed. The government, he added, is not obliged to guarantee fixed prices for any commodity. Finally, he endorsed the Prime Minister’s appeal for restrained overseas spending by citizens but rejected proposals for mandatory curbs or high-yield NRI deposit schemes that could impose future costs on the economy.