The US-Israel-Iran conflict in West Asia weighed on the rupee, and FII and FDI flows also contributed to the pressure, Dev said, adding that it will stabilise around 92-93. “One should not worry.”
The chairman, EAC-PM, was speaking on the sidelines of a session on India’s Macroeconomy: Challenges and Opportunities organised by Bharat Chamber of Commerce in Kolkata. His remarks came on a day when the United States and Iran agreed to a two-week ceasefire.
The rupee, which breached 95 per dollar in March, closed at ₹92.58 on Wednesday.
Dev said that the Indian economy is resilient because its macroeconomic fundamentals are strong. “We also have fiscal space, which allows us to withstand shocks that many other countries cannot.”
Dev pointed out that many countries cannot spend as much on capital expenditure or on targeted sections. India is in a better position because its fiscal management is quite strong, he said.
The debt-to-GDP ratio and fiscal deficit are relatively low, while reforms could help boost private capex, Dev added.
Calling it “reasonable”, Dev said a 7 per cent growth was also achievable. “I am more positive. A 6.9 per cent growth is good, but if things are better, 7 per cent growth is possible. We have inherent strength.”
