April 1, 2025
Rajya Sabha MP Ritabrata Banerjee’s supplementaries to his starred question on sector-wise break-up of foreign portfolio investor outflows and the outflows’ correlation to the depreciation of the rupee, and the policy measures the government has explored to stabilise our currency
Sir, a crucial factor that determines the demand for any currency is the demand among foreigners for the goods and assets of the country. Since foreigners will first have to purchase the local currency before they can purchase goods and assets, high demand for a country’s goods and assets translates to high demand for its currency. Between January, 2023 and March, 2024, Foreign Portfolio Investors pulled out nearly 15 billion dollars from Indian equity markets, leading to a significant pressure on rupee. Sir, through you, I want to know from the Government: Can the Government provide a detailed break-up of sectorwise Foreign Portfolio Investors’ outflows and their correlation with the depreciation of our rupee? Sir, the RBI has been using its dollar reserves to prop up the value of the rupee by artificially increasing the supply of dollars in foreign exchange market. Sir, India’s Current Account Deficit, widened to 1.2 per cent of our GDP in quarter three of financial year 2024- 25. Through you, Sir, I want to know from the Government: What policy measures has the Government explored to stabilize our currency?
