Industry Backs RBI and Finance Ministry Measures to Stabilize Rupee
ASSOCHAM supports coordinated policy actions aimed at strengthening investor confidence and attracting durable capital.
1Coordinated Policy Support
ASSOCHAM has officially endorsed the recent strategic measures implemented by the Reserve Bank of India and the Finance Ministry. These actions aim to stabilize the rupee and bolster investor confidence amidst global economic uncertainty. The industry body emphasizes that these coordinated efforts are essential for maintaining long-term macroeconomic stability within India.
2Focus on Durable Capital
The industry body aligns with former RBI Governor D. Subbarao regarding the necessity of attracting sustained, long-term capital flows. Policymakers are prioritizing economic fundamentals to ensure that foreign investment remains durable rather than volatile. This approach seeks to move beyond short-term capital fluctuations toward building a more resilient and stable financial environment.
3Successful FCNR Mobilization
The effectiveness of recent interventions is highlighted by the successful completion of the 133 billion dollar FCNR(B) mobilization window. This program, which concluded on August 31, played a critical role in helping the rupee recover from its recent lows. Such results demonstrate the practical impact of targeted government and central bank initiatives.
4Macroeconomic Fundamentals Remain Strong
Chief Economist S.P. Sharma notes that India maintains robust macroeconomic indicators, including healthy foreign exchange reserves. The RBI projects a GDP growth rate of 7.1 percent for the 2026-27 fiscal year. Furthermore, authorities are actively managing inflation through calibrated monetary tightening to preserve the purchasing power and stability of the domestic currency.
5Tax Incentives for Investors
The Income-tax Amendment Ordinance of 2026 introduces significant tax relief to attract foreign portfolio investors. Effective April 1, 2026, investments in government securities are exempt from taxes on interest income and capital gains. This legislative change is designed to make Indian debt instruments more competitive and attractive to international institutional capital.
6Future Budgetary Consultations
Finance Minister Nirmala Sitharaman has signaled that investor feedback regarding long-term capital gains tax and securities transaction tax will be reviewed. These discussions are scheduled as part of the preparations for the 2027-28 Union Budget. The industry views this consultative process as a positive step toward refining the overall investment climate.
7Calls for Tax Rationalization
Despite recent progress, the industry continues to advocate for further tax rationalization and simpler interpretation of complex tax provisions. There is a specific push for measures that incentivize long-term equity investments over short-term speculative flows. Simplifying the regulatory framework remains a primary objective for industry leaders working alongside the government and SEBI.
8Strengthening Global Appeal
ASSOCHAM remains committed to collaborating with the RBI, the Finance Ministry, and SEBI to enhance India's attractiveness as a global investment destination. By focusing on structural reforms and stable policy environments, the industry aims to secure India's position as a preferred market for long-term global capital in the coming years.