Rising FPI inflows keep the Indian Rupee in a manageable range of ₹82 to ₹83.5/USD in FY24, Says Economic Survey

India witnessed positive net foreign portfolio investment (FPI) inflows in FY24 of USD 44.1 billion, supported by strong economic growth, a stable business environment, and increased investor confidence, as per Economic Survey 2023-24 tabled in Parliament on Monday. Rising FPI inflows kept the Indian Rupee in a manageable range of ₹82 to ₹83.5/USD in FY24. The Rupee emerged as the least volatile currency among its emerging market peers and a few advanced economies in FY24. The shock absorbers of Indias external sector - forex reserves, sustainable external debt indicators, and market-determined exchange rate, are in place to cushion the global headwinds. The relative stability of the rupee, despite a stronger US dollar and elevated US treasury yields, reflects the strength of the Indian economy's sound macroeconomic fundamentals, financial stability, and improvements in external position. In the future, robust foreign inflows and comfortable trade deficits are expected to keep the ...