Rupee Slump Sparks Parliament Row: Sitharaman Says Currency 'Doing Fine' Amid War

A political divide over India’s currency valuation resurfaced in the Lok Sabha on Monday, as opposition leaders linked the rupee’s recent volatility to a decline in the Prime Minister’s popularity.

During the Budget Session, Samajwadi Party MP Dharmendra Yadav criticized the administration’s handling of the economy, stating, "The popularity of the PM is going down and the value of the rupee is decreasing." This critique comes as the rupee hit nominal lows earlier this month following the outbreak of the West Asia conflict on February 28.

Government Defends Economic Resilience 

Responding to the critique, Finance Minister Nirmala Sitharaman rejected the opposition’s narrative, asserting that the Indian economy remains "very strong" and "economically vibrant." She stated on the Indian currency, "theek chal rahi hai" (is doing fine). Sitharaman maintained that the rupee’s movement is because of external global shocks, primarily the strengthening U.S. dollar and the ongoing conflict in West Asia, rather than internal mismanagement.

The Finance Minister said that the government has proactively shielded citizens from these global pressures. She noted that petrol and diesel prices have remained unchanged since the crisis began, supported by an excise duty cut of up to ₹10 per litre. "In India, for the last four years... we have been managing continuously under PM Modi's guidance," Sitharaman added, pointing to the passage of the Finance Bill 2026 last Friday as evidence of stable economic governance.

Market and Fiscal Context 

Following a record ₹1.14 lakh crore ($12.3 billion) exodus by Foreign Institutional Investors (FIIs) in March, the Reserve Bank of India (RBI) recently enforced a $100 million cap on bank Net Open Positions to curb speculative pressure on the currency.

Despite the political sparring, the government’s fiscal targets remain fixed. The Finance Bill 2026, which received parliamentary approval on March 27, projects a fiscal deficit of 4.3% of GDP for the 2026-27 fiscal year, down from 4.4% in the current year. 

Also read: Gold, Silver Prices Today: Gold Rates Drop, Silver Prices Surge -