In a strongly-worded critique of Prime Minister Narendra Modi, the Congress party has spotlighted the dramatic decline in the value of the Indian rupee against the US dollar over the last decade. According to Congress spokesperson Supriya Shrinate, the currency’s depreciation symbolizes not only economic instability but also a decline in the dignity of the prime minister’s office.
Speaking at a press conference on Friday, January 24, Shrinate painted a stark picture of the rupee’s journey. “The rupee was at 58 to a dollar when Mr. Modi assumed office in 2014. Today, it hovers around 87, marking a 50% depreciation. It seems the prime minister is set on a trajectory to make it hit a century,” she said, wielding a magnifying glass to underscore her point.
Shrinate further accused the Modi administration of lacking a coherent plan to stabilize the rupee. She questioned the Centre’s reliance on India’s foreign exchange reserves to artificially buoy the currency, highlighting the risks associated with depleting this crucial financial buffer.
The Historical Context of Rupee Depreciation
To provide context, Shrinate shared data tracing the rupee’s value since India’s independence.
| Prime Minsiters | Depreciation of Indian National Rupees |
|---|---|
| Jawaharlal Nehru (1947-1964) | The rupee’s value declined by only 2% over 17 years, reflecting a period of relative stability. |
| Lal Bahadur Shastri (1964-1966) | The currency remained steady. |
| Indira Gandhi (1966-1977, 1980-1984) | The rupee saw a 5% decline during each of her two tenures. |
| Rajiv Gandhi (1984-1989) | The depreciation stood at 6%. |
| P. V. Narasimha Rao (1991-1996) | Economic reforms during his tenure led to a 17% fall. |
| Atal Bihari Vajpayee (1998-2004 | The rupee’s value declined by 11%. |
| Dr. Manmohan Singh (2004-2014) | :Amid global financial crises, the rupee saw fluctuations, peaking at 69 before recovering to 58. |
Shrinate contrasted this historical data with the Modi government’s record, stating,
“The rupee has depreciated by 34% under Mr. Modi, contributing to half of its fall since independence.”
Shrinate’s remarks come at a time when the opposition is ramping up criticism ahead of key state and national elections. The Congress party is leveraging the rupee’s decline to underscore broader economic mismanagement by the Modi government.
During her address, Shrinate mocked the prime minister’s silence on the matter, stating, “If asked about the falling rupee, Mr. Modi might as well blame Jawaharlal Nehru.” Her comments were accompanied by a pie chart illustrating the rupee’s depreciation under various prime ministers.
Government’s Response and Counterpoints
While the Congress sharpened its attacks, the government highlighted positive indicators such as rising stock markets and controlled inflation to argue for economic resilience. The rupee’s slight appreciation by 18 paise to 86.26 on Friday was cited as evidence of market confidence.
Moreover, government officials have attributed the rupee’s decline to global factors, including geopolitical tensions and tightening monetary policies in the US, rather than domestic mismanagement. The ongoing debate over the rupee’s depreciation underscores the complex interplay of global economic forces and domestic policy decisions. While the opposition accuses the Modi government of neglecting economic stability, the administration maintains that external factors are primarily to blame. As the rupee continues to fluctuate, its trajectory will remain a focal point in India’s political and economic discourse.
(Facts and figures provided in the article is as per the data shared by congress spokesperson)