As the Indian rupee hovers near record lows against the US dollar, Union Finance Minister Nirmala Sitharaman believes the Indian currency will find its way amid India’s strong growth prospects. “The rupee will have to find its own way,” the FM said in an interaction at the 23rd edition of the Hindustan Times Leadership Summit (HTLS). The FM emphasized that the debate on the currency levels should include the current economic realities rather than comparing them with past situations. “Look at the fundamentals of the economy. Look at the growth. The currency debate must be surrounded by current realities rather than being compared in a black-and-white manner with past situations,” said the FM. “As for the rupee-dollar exchange rate, when the value of the currency falls, the natural argument is that exporters should capitalize on it. Some people happen to point out that at a time of US tariffs it seems to offer some respite. Even if that is true, I am not entirely satisfied with that explanation – but it is true that the strength of the economy needs to be judged,” The Indian rupee hit an all-time low of ₹90.46 per US dollar on 4 December achieved, mainly due to the delay in the India-US trade agreement and continued foreign capital outflows from the Indian stock market. The local currency especially weakens against the dollar when retail inflation is at a record low and GDP growth exceeds 8%. India’s GDP growth in Q2FY26 rose to a six-quarter high of 8.2%. On the other hand, India’s retail inflation fell to a record low of 0.25% in October. The FM believes the Indian economy’s growth seen in the second quarter will sustain, and overall this year’s (FY26) growth could be 7% or even higher. Answering the question about the two bold reforms – the income tax cut and the rationalization of GST rates – the FM said their impact can be assessed more clearly after some time. “Regarding income tax, the assessment in terms of tax collection will not come until next year, but we are already seeing the impact on spending. As for GST changes, because they apply across the board, we need to evaluate them over the medium term,” the FM said.