Daijiworld Media Network - New Delhi

New Delhi, Dec 4: During Zero Hour in the Rajya Sabha, Congress MP Vivek Tankha delivered a forceful warning about what he called the “freefall” of the Indian rupee and the growing financial distress confronting citizens and businesses across the country. Calling the situation urgent, he said the currency’s plunge was creating widespread pressure on households and key sectors of the economy.

Tankha pointed out that the rupee had slipped beyond Rs 90 per US dollar — hovering between 90.14 and 90.19 — its weakest level ever. Over a five-year span, he said, the rupee has shed 20–27 per cent of its value, eroding people’s purchasing power by nearly a quarter. With a 5 per cent decline this year alone, he described the rupee as one of Asia’s poorest performers in 2025.

He also cited India’s record monthly trade deficit of over USD 40 billion and the withdrawal of more than USD 17 billion by foreign investors — the largest outflow in recent years — signalling fading confidence and tighter capital flows. According to him, stagnant FDI and slowing external borrowings were feeding concerns about India’s external stability.

Explaining the lived impact on citizens, he said every drop in the rupee makes imports costlier, and India’s heavy reliance on imported fuel, cooking gas, machinery, electronics and medicines quickly feeds into higher inflation. A 5 per cent depreciation, he noted, can raise inflation by 30–35 basis points. Families, he said, are paying more for essentials, while rising transport and food prices hit the poor the hardest. The middle class, too, is facing higher costs for electronics, medical equipment, school supplies and household goods, making everyday expenses feel like a pay cut “without anyone informing you.”

Tankha stressed the severe strain on MSMEs that depend on imported inputs, many of which are now burdened with a 20–30 per cent surge in raw-material costs. Machinery has become more expensive, slowing expansion plans and threatening jobs. Meanwhile, exporters are not benefiting from the weaker rupee because key export industries rely on imported intermediates, leaving small manufacturers squeezed between rising costs and weaker demand.

Firms with foreign-currency loans are also being hit, as repayment burdens have climbed 15–20 per cent due to the rupee’s fall. Tankha warned that continued depreciation discourages global investors, creating a “vicious cycle” of falling confidence and mounting currency pressure.

He urged the government to recognise the gravity of the situation and take swift corrective steps to stabilise the rupee and protect vulnerable sectors before the strain deepens further.