Rupee, gold and silver under close watch, Budget strengthens long-term growth outlook, says DEA Secretary
The Centre and the Reserve Bank of India (RBI) are closely tracking movements in the rupee and fluctuations in gold and silver prices, while remaining ready to deploy policy tools to maintain macroeconomic stability, Department of Economic Affairs (DEA) Secretary Anuradha Thakur said, ANI reported.“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, adding that maintaining the rupee within a certain range is a delicate exercise.
Highlighting the policy focus on manufacturing, Thakur said the sector has made significant gains since 2014, supported by initiatives such as Make in India and the Production-Linked Incentive (PLI) schemes. She said the Union Budget builds on this momentum and lays the foundation for sustained 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.The DEA Secretary also expressed confidence about equity market recovery, saying the Budget has outlined multiple steps aimed at strengthening medium- and long-term growth fundamentals.“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 investment (FPI) flows, Thakur noted that such movements tend to be cyclical in nature.“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,” she said.“Given the strong long-term growth prospects outlined in the Budget, the market will eventually recover and continue to grow,” she added.
