Why Indian manufacturers may want the rupee to hit 100
- Sunny VermaPravin Palande
- ET Prime Jun 03, 2026, 17:33 IST IST
It’s been 35 years since India, following an unprecedented financial emergency, transitioned from a closed economy to a globally integrated one. In 1991, when the country took the liberalisation plunge amid a balance of payments (BoP) crisis, the rupee traded at 35 against the US dollar. The crude oil prices hovered at around USD22.
Since then, the rupee has depreciated 3% on an annual basis while crude oil is up 4% annually. And over the last 10 years, the rupee is down 4% annually while oil prices have risen 11% annually. In fact, the last two years have been tough for the Indian economy. Foreign investors are moving out, FDI is at an all-time low and there is hardly any demand boost for Indian companies to invest back in the economy.
Since then, the rupee has depreciated 3% on an annual basis while crude oil is up 4% annually. And over the last 10 years, the rupee is down 4% annually while oil prices have risen 11% annually. In fact, the last two years have been tough for the Indian economy. Foreign investors are moving out, FDI is at an all-time low and there is hardly any demand boost for Indian companies to invest back in the economy.
