NEW DELHI: Commenting on the devaluation of rupee against the US dollar breaching its previous lows in almost every new trading day, NITI Aayog Vice-Chairman Rajiv Kumar on Thursday said that there is a need to change the mindset that strong rupee is equal to a strong economy.
“Over-appreciated rupee promotes exports and decreases imports. It also helps in increasing employment. If rupee remains in its natural value, it will be more important for our economy,” he said.
On Thursday, rupee slid to 70.82 against a dollar, after hitting a previous new low on Wednesday. Since the start of the year, the rupee has depreciated around 10 per cent, which, along with some other factors, have pushed petrol and diesel prices up.
“Increase in fuel prices is a temporary blip. It has happened before. Prices go up and down,” Kumar said, adding that inflation is under control and there is no need to create a scary scenario over this. “Inflation is lower than core inflation. The inflationary impact of an oil price rise or a minor exchange rate decline is not that high. We are keeping a vigil on these issues. The Prime minister is completely committed to maintaining fiscal balance and macroeconomic balances,” he said.