New Delhi: Niti Aayog vice-chairman Rajiv Kumar on Thursday said the falling rupee is not a cause of worry as it is getting back to its natural value.
"The rupee rose by about 17 percent during the last three years. Since the beginning of this year, rupee has declined by only 9.8 percent. So, it has recovered. It is rather coming back to its natural value," he said on the sidelines of an event organised by Nabard in New Delhi.
Rupee should be realistically valued and should not be overvalued, he said, adding that the exchange rate is a price which should reflect a true equilibrium between demand and supply.
He pointed out that one should not be under the impression that appreciation of rupee is a sign of a good economy.
To a question, if the depreciating Indian currency was a cause of worry, Kumar said, "certainly not."
Continuing its free fall, the rupee on Thursday slumped 43 paise against the dollar to trade at a life-time low of 70.32 on strong demand for the US currency.
Allaying concerns about state of India's economy, he said, "Our rate of growth is up. Our exports are also beginning to rise. Our agriculture production is up. Our employment growth is up."
While releasing Nabard All India Rural Financial Inclusion Survey, Kumar said India has a capability of doubling farm income in the next few years as the prime minister promised on Wednesday.
India has already achieved food sufficiency and there is efficient distribution network as well, he said.
Having done this, the country is preparing itself for agriculture export, he said, adding that it would require mind set and analytical change to think as a nation which could substantially export agro products.
At the Interbank Foreign Exchange, the local currency opened at a record low of 70.25 a dollar, down from its previous close of 69.89, and weakened further to trade at a fresh low of 70.32, down by 43 paise.
Economic Affairs Secretary Subhash Chandra Garg on Wednesday assured that the situation may ease going forward. “Rupee is depreciating due to external factors,” he said, adding, “There’s nothing at this stage to worry.”
The rupee is down 9 percent this year, making it Asia’s worst performer. In August alone, it lost about 5 per cent, which is steep, but lower than the lira and ruble, which fell 28 and 15 per cent respectively in August.
With inputs from agencies
Updated Date: Aug 16, 2018 14:42 PM