The era of cheap global money is ending, triggering foreign capital outflows and Rupee depreciation. However, India's robust macroeconomic fundamentals, domestic market reliance, and recent inclusion in the JPMorgan global bond index provide vital resilience against global liquidity shocks.
Click to View MoreThe Reserve Bank of India (RBI) manages rupee depreciation through tools like selling US Dollars and adjusting interest rates, addressing factors like trade deficits and capital outflows. A weaker rupee boosts exports but exacerbates inflation and increases debt costs, crucial for India's economic stability.
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