Sitharaman says RBI curbs rupee swings, not its value

RBI taking steps to prevent sudden rupee fluctuations, but does not determine rupee's value, says FM Sitharaman

Tiruchirappalli, October 26

Speaking to reporters in Tiruchirappalli, Sitharaman said the RBI's efforts were aimed at preventing abrupt movements in the rupee rather than fixing its exchange rate.

Her remarks come amid concerns over currency volatility and its implications for India's economy, particularly import costs and inflation.

On the country's fiscal position, Sitharaman said India's fiscal deficit had been declining year after year, with the government working towards reducing the debt-to-GDP ratio to 50 per cent by 2030.

Acknowledging concerns over the country's debt levels, the Finance Minister said such concerns were justified but maintained that the debt burden had been steadily declining.

On inflation, Sitharaman said the government was taking several measures to increase per capita income. However, she pointed out that external factors, including the COVID-19 pandemic, geopolitical conflicts and rising crude oil prices, had contributed to inflationary pressures.

She said the Centre was continuously taking measures to ensure that these developments did not adversely affect the public.

Earlier, addressing the Platinum Jubilee celebrations of Seethalakshmi Ramaswami College (SRC), her alma mater, Sitharaman emphasised the need to translate women's educational achievements into greater economic opportunities.

"Our responsibility now, therefore, is to ensure that progress in education opens greater opportunities for employment, for enterprise, and also for leadership," she said.

Highlighting women's growing participation in entrepreneurship, Sitharaman said, "About two thirds of Mudra loans have gone to women helping them establish and expand small businesses."

She also urged educational institutions to strengthen research and industry partnerships and make full use of government initiatives supporting skill development.

Referring to the government's ITI upgradation programme, she said the scheme was "upgrading 1000 government ITIs with Rs 60,000 crores and industry as co-manager."

Sitharaman also called for greater international collaboration in emerging technologies, including artificial intelligence, semiconductors, biotechnology and climate science, to prepare students for future opportunities.

— ANI