Falling rupee creating economic pain for people: Cong MP in RS

New Delhi, Dec 4 (PTI) Rajya Sabha Congress MP Vivek K Tankha on Thursday expressed concern over the sharp depreciation of the Indian rupee against the US dollar, saying the falling domestic currency has created economic pain for the common people.

Raising the matter during the Zero Hour in the House, the senior leader said the rupee breached the 90-a-dollar level and became the "weakest" in Indian history.

"I am talking about something which is very topical. The free fall of the Indian rupee and the widening economic pain for the ordinary Indian. The rupee has crashed, past 90 per US dollar... The weakest in Indian history," he said.

In just five years, he said, the rupee has lost 20 to 27 per cent of its value, meaning that the money in people's pockets now buys a quarter less in global terms, Tankha said.

He said the rupee has fallen 5 per cent this year alone, the sharpest since 2022, making it Asia's worst-performing currency in 2025.

The Congress MP further said India recorded a high trade deficit of over USD 40 billion in a single month, a sign of how deeply imports outweigh exports.

Also, foreign investors have withdrawn over USD 17 billion from the Indian market this year, the biggest exit in years, drying up capital.

FDI inflows are stagnant, and external borrowing has slowed, a sign that the world is becoming wary of India's external stability, he added.

Tankha said a weakening rupee raises the cost of imports, which in turn adds to inflation, affecting the poor and middle class, as well as Micro, Small and Medium Enterprises (MSMEs).

Everything, including smartphones, laptops, and medical equipment, becomes costlier because India imports components for most products, he said.

Also, exporters do not benefit much because many export sectors, such as textiles, chemicals, and engineering, rely heavily on imported intermediates.

"For the common person, the falling rupee feels like a salary cut without the employer even informing you, your money buys less every day," the Congress MP said.

The rupee slumped 28 paise to an all-time low of 90.43 against the US dollar in early trade on Thursday, amid substantial foreign institutional investor outflows and restrained intervention from the Reserve Bank of India. PTI NKD DRR