Mini crisis, self-inflicted: Policy missteps leave the rupee under pressure
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India faces a self-inflicted mini foreign-exchange crisis, with the rupee depreciating nearly 12% against the dollar due to simultaneous current and capital account deficits. The government is considering reforms, including tax cuts for foreign investors and restrictions on capital outflows, to stabilize the currency. Experts attribute this to policy missteps that discouraged foreign capital, exacerbating structural vulnerabilities like high import dependence and insufficient domestic savings needed to sustain economic growth ambitions.
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