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India Monitors Rupee, Gold Prices; Budget Fuels Manufacturing Growth

The government and RBI are closely watching movements in the rupee and prices of gold and silver, ready to use policy tools to ensure stability. The DEA Secretary highlighted the Budget's strong focus on boosting manufacturing through initiatives like the Semiconductor Mission. She expressed confidence that equity markets will recover, attributing current foreign portfolio outflows to cyclical profit-booking. The long-term growth foundation laid by the Budget, in partnership with the private sector, is expected to drive sustained economic expansion.

Key Points: India Tracks Rupee, Gold; Budget Drives Long-Term Growth

  • Govt & RBI monitoring rupee, gold, silver prices
  • Budget gives major push to manufacturing sector
  • Semiconductor Mission 2.0 & rare earth corridors highlighted
  • Confidence expressed in equity market recovery
  • FPI flows cyclical, long-term prospects strong
2 min read

Rupee, gold movements being monitored, Budget lays foundation for long-term growth: DEA Secretary

DEA Secretary says govt, RBI monitoring rupee & gold prices. Budget's manufacturing push, semiconductor mission to fuel long-term economic growth.

"Our job... is to monitor these developments and, from time to time, use the instruments available - Anuradha Thakur"

New Delhi, February 1

The Centre and the Reserve Bank of India are closely monitoring the movement of the rupee and fluctuations in gold and silver prices, and will take action as required to safeguard macroeconomic stability, Anuradha Thakur, Secretary, Department of Economic Affairs, said on Sunday.

"As far as the rupee or the increase in prices of silver and gold is concerned, our job as a government and with the RBI as the main regulator is to monitor these developments and, from time to time, use the instruments available under rules, regulations and laws," Thakur said. She added that maintaining the rupee within a certain range is a delicate exercise.

Highlighting the government's focus on manufacturing, the Secretary said the sector has witnessed significant progress since 2014 with initiatives such as Make in India and the Production-Linked Incentive (PLI) schemes. She said the Union Budget further strengthens this momentum, and lays foundation for long-term growth.

"This year's Budget gives a major push to manufacturing. Initiatives such as Semiconductor Mission 2.0 and the development of rare earth corridors are examples of the long-term vision reflected in the Budget," she said.

Expressing confidence in the equity markets, the Secretary, DEA said the market is expected to recover as the Union Budget has laid out several concrete steps to strengthen medium- and long-term growth prospects.

"These measures are being implemented in partnership with the private sector, whether it is medical hubs, university townships or other initiatives. I am quite confident that the market will recover," she said.

On foreign portfolio investments (FPI), she said, "Such flows are inherently cyclical. The current phase reflects profit booking by investors and the availability of higher interest rates in some global markets, which has prompted capital movement away from India."

"Given the strong long-term growth prospects outlined in the Budget, the market will eventually recover and continue to grow," she added.

- ANI

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Reader Comments

P
Priya S
The focus on manufacturing through PLI and the Semiconductor Mission is a very positive step. This is how we build real economic strength and create jobs. 🇮🇳 Hoping the execution matches the vision.
R
Rohit P
Gold and silver prices are going through the roof! My family is worried about wedding season expenses. Glad to hear they are monitoring it, but "will take action as required" sounds vague. We need decisive steps to control this.
M
Michael C
As an investor, the Secretary's confidence in the equity market recovery is reassuring. The Budget's focus on long-term infrastructure and manufacturing is the right approach. Short-term FPI volatility is expected, but fundamentals seem strong.
S
Sneha F
While the long-term vision is appreciated, I respectfully disagree that the market will "eventually recover" on its own. The government needs more proactive, tangible support for small investors and the middle class who are bearing the brunt of current economic pressures.
K
Karthik V
Rare earth corridors and semiconductor push show we are thinking ahead. This is strategic thinking to reduce dependence on other countries. Jai Hind! The partnership with the private sector is key to making this a success.

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