BJP Asserts Indian Rupee is Among Most Stable Currencies Amidst Congress Criticism

The Bharatiya Janata Party (BJP) has asserted that the Indian rupee is one of the world's most stable currencies. This statement comes in response to Congress's criticism regarding the rupee's depreciation against the US dollar. Amit Malviya, head of BJP's IT cell, highlighted India's improved external position, reduced current-account deficit, and strong foreign exchange reserves as factors contributing to the rupee's stability.

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Over the past year, the rupee depreciated by 3.68%, outperforming major currencies like the Japanese Yen and Korean Won, which fell by 9% to 12%. This occurred even as the US Dollar Index increased by 9.8%, according to Malviya. He urged people to remember the rupee's poor performance under the United Progressive Alliance (UPA) and its improvement under Modi's leadership.

Congress Criticism and BJP's Response

The BJP's comments followed Congress's criticism of Prime Minister Narendra Modi over the rupee's decline. Congress general secretary Jairam Ramesh noted that when Modi became PM, the rupee was at 58.58 to the dollar. He recalled Modi's past remarks linking the rupee's fall to his predecessor's age. Ramesh pointed out that the rupee recently experienced its steepest drop in nearly two years, falling 55 paise to a historic low of 86.59 against the US dollar.

Malviya countered by stating that the rupee is now among the most stable currencies globally, contrasting this with its instability during UPA rule when it depreciated by 36% between 2011 and 2013. He attributed this past vulnerability to reckless external borrowing, which grew over 21% annually under UPA leadership.

Comparative Analysis of Economic Management

Under the BJP-led National Democratic Alliance (NDA) government, external debt growth has been limited to just 4.5% annually, ensuring greater resilience for the rupee. Malviya highlighted that when the US Federal Reserve announced tapering in 2013, the rupee plummeted by 14.9% in four months, exposing UPA's policy paralysis.

In contrast, after a similar announcement in 2021, the rupee declined by only 0.7% over four months, reflecting India's strong economic foundations today. Despite ongoing geopolitical tensions and high US interest rates, India has avoided any currency crisis, showcasing prudent economic management and robust fundamentals.

Rupee Performance Against Other Currencies

While most currencies are under pressure due to a strong dollar, Malviya noted that the rupee has performed better than many others. Against non-dollar currencies like the Euro and Canadian Dollar, it has even strengthened—a scenario not seen in 2013.

This resilience is attributed to India's sound economic policies and management under Modi's government. The BJP leader emphasised that these factors have helped maintain stability despite global challenges.

The BJP remains confident in India's economic strategies and continues to highlight improvements made since Modi took office. The party believes these efforts have fortified India's financial position on a global scale.