The rupee gained 63 paise to settle at 95.73 against the US dollar on Friday, recovering from previous volatility amid ongoing geopolitical tensions in West Asia. According to NDTV Profit, Union Commerce and Industry Minister Piyush Goyal emphasized that 'the government doesn't interfere with the rupee's movement; market forces decide that' while speaking at the 19th Rozgar Mela in New Delhi. Goyal noted that 'of late, the rupee has appreciated' and attributed the currency's recent gains to market forces rather than government intervention. The recovery came after the rupee had faced pressure from a stronger US dollar, higher crude oil prices and global risk aversion, with the currency supported by easing crude oil prices and expectations of intervention by the Reserve Bank of India.
Union Commerce and Industry Minister Piyush Goyal addressed mounting concerns about the rupee's decline and the widening current account deficit (CAD) on Thursday. According to reports from PTI, Goyal emphasized that the Centre was actively considering several measures to contain further pressure on the CAD while stressing that different arms of the government were working in coordination to navigate challenging global economic conditions. 'We are monitoring the situation. All the various arms of government are working as a team. Several steps are under consideration. The situation is globally quite challenging, but we have the confidence and the courage of conviction that we'll come out winners even in this challenging time,' Goyal stated. He was specifically responding to questions about what additional measures the government could take to contain the CAD widening with the rupee sliding. The remarks come at a time when concerns over India's external balances have resurfaced following pressure on the rupee and rising import costs, particularly in the energy sector. Goyal indicated that multiple departments of the government were coordinating efforts to address emerging economic challenges arising from volatile global conditions, with policymakers examining additional interventions to manage external sector risks and maintain macroeconomic stability.
According to RBI data released on March 2, India's current account deficit widened to $13.2 billion, or 1.3% of GDP, in the December quarter, compared with $11.3 billion in the same period a year earlier. As reported by PTI, the increase was largely attributed to a higher merchandise trade deficit following softer exports to the US market. However, the CAD for the April-December 2025 period remained relatively contained at $30.1 billion, or 1% of GDP, lower than $36.6 billion, or 1.3% of GDP, during the corresponding period of the previous year. Despite the rise in the quarterly deficit, economists have pointed out that India's external balances have remained manageable despite persistent geopolitical tensions, supply chain disruptions and uneven global demand. Strong services exports, especially in information technology and business services, along with steady remittance inflows from overseas Indians, have continued to provide support to the balance of payments. A current account deficit arises when a country's total import payments for goods, services and transfers exceed earnings from exports and inward remittances over a specified period.
At the Rozgar Mela, Goyal highlighted strong domestic demand across the economy with both imports and exports rising in tandem. 'Whichever sector I speak to, they say that demand is so good, imports are also increasing along with exports, so there is demand,' he said, as reported by NDTV Profit. Global supply chain risks continue to persist amid geopolitical tensions, with key West Asia shipping routes, including the Strait of Hormuz, under close watch. On the broader trade and industrial strategy, the minister said the government remains focused on boosting domestic manufacturing, reducing import dependence and addressing supply chain vulnerabilities linked to over-reliance on specific geographies. He said efforts were underway to strengthen local production across sectors as part of the wider self-reliance push, with ongoing work under the semiconductor mission and new sectoral proposals aimed at attracting investment.
The rise in precious metals imports has significantly contributed to India's trade deficit challenges. In April, gold imports surged 81.69% year-on-year to $5.62 billion driven by high prices, while silver imports jumped about 150% to $12 billion in the last fiscal. In volume terms, gold imports dipped 4.76% to 721.03 tonnes, but silver imports rose 42% to 7,334.96 tonnes in 2025-26. The rise in these precious metals imports in April has pushed the country's trade deficit to a three-month high of $28.38 billion. Gold prices are currently hovering around ₹1,56,000 per 10 grams (inclusive of all taxes) in the national capital, while silver is priced at around ₹2.53 lakh per kg.
Goyal highlighted continued investment commitments from the United States, particularly in the technology sector. As reported by PTI, he pointed to US commitment upwards $60 billion in the last six months looking at Amazon and Google data centre investment pledge. 'US commitment upwards $60 billion in last six months looking at Amazon, Google data centre investment pledge; US-India truly working as natural partners, complement each other,' Goyal stated, emphasizing the strong bilateral relationship between the two nations. On investment inflows, he said the government had been engaging with players in sectors such as electronics, chemicals and capital goods to tap export potential. He added that detailed data on India's major imports and potential export opportunities would also be placed in the public domain as well, as announced in the Budget.
