Union Commerce and Industry Minister Piyush Goyal on Saturday said the government does not interfere in the movement of the rupee, stating that exchange rates are determined by market forces and influenced by global conditions.
Speaking at the 19th Rozgar Mela in New Delhi, Goyal said, “The government doesn't interfere with the rupee's movement; market forces decide that. I think, of late, the rupee has appreciated.”
His remarks come as the rupee continues to face pressure due to geopolitical tensions in West Asia and concerns over global trade routes.
The rupee recovered on Friday, closing at 95.73 provisionally against the US dollar, up 63 paise from the previous close. The recovery was supported by softer crude oil prices and expectations of intervention by the Reserve Bank of India.
On Thursday, Goyal had said the government was considering steps to contain the widening current account deficit amid concerns over the weakening rupee and broader trade deficit pressures.
At the Rozgar Mela event, the minister said demand remained strong across sectors, leading to growth in both imports and exports.
“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.
Goyal said the government remained focused on strengthening domestic manufacturing, reducing import dependence, and addressing supply chain vulnerabilities linked to over-reliance on certain regions.
He also referred to work underway under India’s semiconductor mission and sector-specific proposals announced in the Budget to attract investments.
According to the minister, the government is engaging with industries including electronics, chemicals, and capital goods to boost exports. He added that detailed data on India’s major imports and export opportunities would also be made public.