Depreciation = Market-driven fall in the value of a currency under a floating/managed float exchange rate system. More rupees required to buy one unit of foreign currency (USD).
Devaluation = Deliberate government/RBI action to reduce currency value, typically in a fixed/pegged exchange rate system.
India devalued its rupee deliberately in 1966 (36%) and 1991 (18–19% in two tranches). Since 1993, India has operated a managed floating system — depreciation is market-driven, not deliberate devaluation.
| Term | Meaning | System | Agency |
|---|---|---|---|
| Depreciation | Market-driven fall in rupee value | Floating / Managed Float | Market forces (RBI manages volatility) |
| Devaluation | Deliberate reduction of currency value | Fixed / Pegged | Government / RBI |
| Appreciation | Market-driven rise in rupee value | Floating | Market forces |
| Revaluation | Deliberate increase in currency value | Fixed | Government |
| NEER | Nominal Effective Exchange Rate — weighted avg vs 40 trading partners, not inflation-adjusted | — | RBI publishes |
| REER | Real Effective Exchange Rate — NEER adjusted for inflation differentials; true competitiveness indicator | — | RBI publishes |
| System | Features | India's Period |
|---|---|---|
| Fixed/Pegged | Currency pegged to gold/another currency; central bank maintains the rate | 1947–1975 (linked to GBP/Bretton Woods) |
| Basket-Linked | Rate linked to weighted basket of major trade-partner currencies (undisclosed) | 1975–1992 |
| Managed Float (LERMS) | Dual exchange rate transitional system; 60% at market, 40% at official rate | Mar 1992 – Mar 1993 |
| Managed Float (Unified) | Fully market-determined; RBI intervenes only to smooth excessive volatility — current system | March 1993 – Present |
LERMS = Liberalised Exchange Rate Management System (introduced March 1992 as a transitional step). UPSC often asks about the transition from LERMS to unified float in 1993. LERMS had a dual-rate structure, not a single market rate.
| Year | Rate (₹/USD) | Key Event / Driver |
|---|---|---|
| 1947 | ~₹3.30–4.76 | Independence; Bretton Woods; pegged to Pound |
| 1966 | ₹7.50 | 1st deliberate devaluation; drought + IMF pressure |
| 1991 | ₹17.9 → ₹24.5 | BOP Crisis; 2nd devaluation (LPG reforms) |
| 2008 | ~₹52 | Global Financial Crisis; FPI outflows |
| 2013 | ~₹68 | Taper Tantrum; Fragile Five; CAD 4.8% GDP |
| 2022 | ₹80+ | Russia-Ukraine war; Fed rate hikes |
| Jan 2025 | ₹86.70 | Record low at the time; FPI outflows; strong USD |
| Apr 2026 | ₹95.33 | Brent crude jumps 7% in one session ($111/barrel) |
| May 2026 | ₹96.35 (record) | West Asia crisis; FPI ₹2.17L cr outflow; RBI intervenes |
The rupee's long-term average depreciation since 1991 liberalisation is approximately 3–4% per year. In FY26, it depreciated ~10% — more than double the historical average, signalling external shock rather than structural failure.
| Feature | FERA 1973 | FEMA 1999 |
|---|---|---|
| Full Form | Foreign Exchange Regulation Act | Foreign Exchange Management Act |
| Enacted | 1973 (effective Jan 1974) | 1999 (replaced FERA) |
| Nature of Offence | Criminal (presumption of guilt; onus on accused) | Civil (offences compoundable; fines, not imprisonment by default) |
| Philosophy | Conserve scarce forex; presumption of illegality unless permitted | Manage forex; facilitate trade/investment; permitted unless prohibited |
| Applicability | All Indian citizens; Indian entities | All persons in India + Indian citizens outside India for specified acts |
| Context | Post-1971 oil shock; forex scarcity; protectionist economy | Post-LPG liberalisation; forex abundance; open economy |
| Replaced by | FEMA 1999 (FERA repealed in 1998) | Current operative law |
| Key Addition | — | Paved way for Prevention of Money Laundering Act (PMLA) 2002 |
| Aspect | Detail |
|---|---|
| Regulator | Reserve Bank of India (RBI) — passes regulations; Central Government passes rules |
| Current Account Transactions | Largely free; RBI permission NOT required (trade, education, travel remittances) |
| Capital Account Transactions | Regulated; RBI permission may be required (FDI, ECB, investments abroad) |
| Adjudication | Enforcement Directorate (ED) investigates; penalties compoundable |
| Appeals | Appellate Tribunal for Foreign Exchange (ATFE) → High Court |
| Parameter | Detail |
|---|---|
| Introduced | 2004 by RBI (AP Dir Series Circular No. 64) |
| Limit | USD 250,000 per resident individual per financial year |
| Eligible | All resident individuals (including minors); NOT available to corporates, HUF, trusts, partnership firms |
| Permitted Uses | Education abroad, medical treatment, travel, gifts, overseas investments, opening foreign bank accounts |
| TCS Threshold | ₹10 lakh/year (raised from ₹7L in Budget 2025); TCS rate 5% above threshold (from Apr 1, 2026 per IT Act 2025) |
| Restriction | Cannot remit to countries notified as "Non-Cooperative" (FATF grey/black list) |
| Legal Basis | Under FEMA 1999; specifically FEMA (Current Account Transactions) Rules 2000 |
| Source | Provision | Relevance |
|---|---|---|
| RBI Act 1934 | Section 3 — RBI established as central bank; empowered to manage currency, reserves, credit | Legal basis for RBI's forex intervention authority |
| FEMA 1999 | Empowers RBI to regulate capital account, forex dealers, and ECBs | Operative forex management law |
| Article 246 + 7th Schedule | Entry 36 (Union List): Foreign Exchange | Parliament's exclusive power to legislate on forex |
| Article 38 (DPSP) | State to minimise inequalities; guides exchange rate management philosophy | Philosophical basis for managed rate |
| Coinage Act 2011 | Government of India's exclusive right to mint coins | Currency issuance framework |
FEMA violations are civil offences, NOT criminal. Under FERA, they were criminal. Students often confuse this. Under FEMA, the ED investigates, but imprisonment is NOT the default — monetary penalty is.
UPSC has asked: "Which of these is NOT regulated under FEMA?" Remember: Current Account Transactions (trade, education, travel remittances) are largely free under FEMA — NO RBI permission needed. Capital Account Transactions (FDI, ECB, overseas investment) ARE regulated.
| Category | Cause | Mechanism | 2026 Relevance |
|---|---|---|---|
| Structural / Domestic | High crude oil import dependence | India imports ~88% of crude; pays in USD → constant dollar demand → rupee supply rises | Brent at $107–111/barrel in May 2026; oil constitutes ~25% of India's import bill |
| Current Account Deficit (CAD) | Imports > Exports → more dollars demanded than supplied → rupee weakens | CAD moderated to 1.3% GDP in Q2 FY26; but West Asia shock widening it again | |
| High gold imports | India world's 2nd-largest gold consumer; gold imports widen CAD and dollar demand | Gold duty raised in 2026 as a counter-measure | |
| External / Global | Strong US Dollar (DXY) | Fed rate hikes → US investments more attractive → global capital flows to USD → EM currencies weaken | US 10-yr Treasury yield at 4.6250% in May 2026; Fed holding rates higher for longer |
| FPI / FII Outflows | Foreign investors sell Indian equities/bonds → dollars leave India → rupee pressure | FPI sold ₹2.17 lakh crore from Indian equities in 2026 (> entire 2025 outflow of ₹1.66L cr) | |
| Geopolitical shock / West Asia crisis | Oil price surge + risk-off sentiment + Strait of Hormuz concerns → EM capital flight + import bill spike | US-Israel strikes on Iran; Strait of Hormuz closure fears; Brent jumped 7% in single session (Apr 29) | |
| Policy / Financial | Interest rate differential | If US rates > India real rates → capital flows to USD → rupee weakens; RBI cutting rates widens gap | RBI cut repo rates in 2025; US Fed held firm → differential narrowed → capital outflow |
| Weak Net FDI | Gross FDI strong but outflows (repatriation + outward FDI) elevated → net FDI turns weak → less stable dollar supply | Gross FDI: $7.3bn/month in Jan-Feb 2026 but outflows $5.7bn/month → net FDI weak |
Every $10 rise in crude oil prices widens India's Current Account Deficit by 40–50 basis points (0.4–0.5% of GDP) — ORF estimate. Every ₹1 depreciation adds ₹8,000–₹10,000 crore to the annual crude oil import bill.
Crude prices rise → India pays more dollars for oil → rupee supply increases → rupee depreciates → same crude costs even more rupees → CAD widens further → rupee depreciates more. A self-reinforcing feedback loop.
A 5% rupee depreciation adds approximately 15 basis points (0.15%) to domestic CPI inflation (RBI estimate). Each 1-rupee fall adds 0.2–0.3% to inflation (analyst estimates).
UPSC asks "which factor does NOT cause rupee depreciation?" — Know that higher remittances from NRIs and rising exports cause appreciation pressure (dollar supply increases). Don't confuse direction of effect.
| Sector / Indicator | Effect of Depreciation | Direction | Key Stat |
|---|---|---|---|
| Crude oil import bill | Rises sharply — India pays more rupees for same barrel | ❌ Negative | Every ₹1 fall = +₹8,000–10,000 cr/year on oil bill |
| CPI Inflation (import-led) | Rises — costlier imports pass through to domestic prices | ❌ Negative | 5% depreciation → +15 bps inflation (RBI); each ₹1 = +0.2–0.3% inflation |
| Current Account Deficit | Widens — import bill rises faster than export competitiveness gain | ❌ Negative | $10 crude rise = 40–50 bps CAD widening |
| External Debt Servicing | ECB repayments costlier in rupee terms; corporate balance sheet stress | ❌ Negative | External debt: $736.3 billion (Mar 2025) |
| IT / Pharma Exports | Benefit — revenues in USD, costs in INR → higher rupee margins | ✅ Positive | TCS, Infosys, Wipro; Sun Pharma, Dr Reddy's — biggest beneficiaries |
| Remittances (NRI) | Inward remittances more valuable in rupee → boosts remittance-sender incentive | ✅ Positive | India world's largest remittance recipient (~$120B in FY25) |
| Forex Reserves | RBI sells dollars to curb volatility → reserves depleted | ❌ Negative | Reserves fell from peak $705B+; adj. for gold & forward positions = 5.8 months cover (analyst est.) |
| Fiscal Deficit | Higher fuel subsidies/pass-through costs raise govt expenditure | ❌ Negative | State fuel retailers raised petrol/diesel prices for 1st time in 4 years (May 2026) |
| Education / Travel abroad | More expensive for Indians — cost of foreign education/travel rises | ❌ Negative for citizens | LRS outflows become costlier in rupee terms |
The 40-currency REER fell to 92.72 in April 2026, below its long-term average of 98.25. The 6-currency REER touched a record low of 89.61 in March 2026. This means the rupee has become genuinely cheap on a trade-weighted basis — not merely correcting overvaluation. This limits the RBI's comfort with further depreciation.
India's forex reserves stood at $709.8 billion as of March 2026 (about 11 months import cover). However, adjusting for ~$113B in gold holdings and ~$103B in short forward positions, effective usable reserves provide only 5.8 months import cover — lowest since 2014 (analyst estimate).
| Instrument | What It Does | Used When |
|---|---|---|
| Spot Intervention | RBI sells USD in spot market → increases dollar supply → supports rupee | Sharp intraday depreciation; disorderly markets |
| Forward Contracts | RBI commits to buy/sell dollars at future date at agreed rate; acts like insurance | Smooth expected future volatility; manage forward book |
| NDF (Non-Deliverable Forwards) | RBI curbs speculative offshore positions in rupee; tightened rules in 2026 | Contain speculative pressure on rupee from offshore markets |
| Net Open Position Limit | RBI directed authorised dealers to keep net open rupee positions ≤ $100 million (March 2026) | Prevent speculative one-sided bets on rupee |
| Repo Rate / Monetary Policy | Raising rates → attracts capital inflows → supports rupee (but slows growth) | Tradeoff tool — RBI uses sparingly for rupee |
| NRI Deposit Scheme | Special scheme to attract NRI dollar deposits (last used 2013 — raised $26B); under consideration in 2026 | Crisis-level depreciation; attract stable dollar inflows |
| Masala Bonds | Rupee-denominated bonds issued by Indian entities in overseas markets; forex risk on investor, not issuer | Attract foreign capital without currency risk to India |
| Institution | Full Form | Role |
|---|---|---|
| RBI | Reserve Bank of India (est. 1935) | Manages forex reserves; intervenes in markets; regulates FEMA; issues regulations for forex dealers |
| FEDAI | Foreign Exchange Dealers Association of India (est. 1958) | Self-regulatory body; sets rules for interbank forex market; accredits forex dealers |
| CCIL | Clearing Corporation of India Ltd | Central counterparty for forex transactions; ensures settlement |
| SWIFT | Society for Worldwide Interbank Financial Telecommunication | Satellite-based messaging network for international forex transactions; HQ Brussels |
| ED | Enforcement Directorate | Investigates FEMA violations; operates under Ministry of Finance |
| ATFE | Appellate Tribunal for Foreign Exchange | Hears appeals against ED orders under FEMA |
| FBIL | Financial Benchmarks India Pvt Ltd | Publishes reference rates for INR (FBIL rates replace RBI reference rates) |
| Indicator | What It Measures | Inflation-Adjusted? | Basket |
|---|---|---|---|
| NEER | Nominal Effective Exchange Rate — weighted average of exchange rates against trading partners | ❌ No | 40 currencies (RBI); 6 currencies (alternative) |
| REER | Real Effective Exchange Rate — NEER adjusted for relative inflation; measures true competitiveness | ✅ Yes | Same as NEER |
REER > 100 = rupee is overvalued (exports less competitive). REER < 100 = rupee is undervalued (exports more competitive). In April 2026, 40-currency REER = 92.72 — below long-term average of 98.25, meaning rupee is already cheap on real terms. UPSC often tests this directional logic.
The largest forex market centre globally is London. The forex market is the world's largest and most liquid financial market. India's forex market operates through an electronically linked network of big banks, dealers, and brokers — it has no physical trading floor.
In 2013, Morgan Stanley coined the term "Fragile Five" for India, Indonesia, Brazil, South Africa, and Turkey — five emerging economies with large CADs, vulnerable to Fed taper. India's rupee fell ~12% in FY2013–14. In FY2025–26, rupee again fell ~9.6% — almost identical in scale, but driven by different external shocks.
| Country / Currency | Performance (12 months to mid-2026) | Key Driver |
|---|---|---|
| India (INR) | ~-12% (worst in Asia); ₹85 → ₹96/USD | Oil shock, FPI outflows, strong USD, CAD |
| Turkey (Lira) | ~-17% (worst globally); structural crisis; lost 1000%+ since 2018 | Chronic high inflation, unorthodox monetary policy |
| Indonesia (Rupiah) | ~-4% (modest depreciation) | Relative stability; commodity export windfall |
| Brazil (Real) | ~+12% (appreciation) | Strong commodity exports; fiscal tightening |
| South Africa (Rand) | ~+10% (appreciation) | Improved capital flows; commodity prices |
| China (Yuan/CNY) | ~+1.4% (marginal appreciation) — best Asian performer | PBOC management; trade surplus with US |
| Thailand (Baht) | ~-3.5% | Tourism recovery slower than expected |
| Parameter | 2013 Taper Crisis | 2026 West Asia Crisis |
|---|---|---|
| Trigger | US Fed taper announcement ("Taper Tantrum") | West Asia war → oil shock; Strait of Hormuz fears |
| Rupee fall | ~12% (FY14); ~₹68/USD | ~10% in FY26; ~12% in 12 months; ₹96/USD |
| CAD at crisis | 4.8% of GDP (dangerous) | 1.3% of GDP Q2 FY26 (manageable) |
| Forex reserves | Low; nearly depleted | $709.8B (strong buffer) |
| RBI Response | Emergency NRI deposit scheme; rate hikes | Spot intervention; forward positions; NOP limits; NRI scheme under consideration |
| Banking sector | Stressed (NPA crisis building) | Stable; capital adequacy robust |
| Growth context | India in "Fragile Five"; investor confidence low | GDP 7%+; fundamentals sound; external shock-driven |
UPSC often asks about the "Fragile Five" — coined by Morgan Stanley in 2013. The five: India, Indonesia, Brazil, South Africa, Turkey. Trigger: CAD + vulnerability to capital outflows. In 2026, India's position is significantly stronger than in 2013.
| Linked Concept | Connection to Rupee | UPSC Hook |
|---|---|---|
| Current Account Deficit (CAD) | Wider CAD = more dollars demanded for imports than supplied by exports → depreciation pressure | India's CAD: 1.3% GDP Q2 FY26; every $10 crude rise = 40–50 bps CAD widening |
| Balance of Payments (BoP) | BoP = Current Account + Capital Account + Financial Account. Rupee falls when overall BoP is in deficit (more dollars leaving than entering) | Capital Account surplus (FDI/FPI inflows) can offset Current Account deficit — key BoP balancing act |
| Fiscal Deficit | Oil price pass-through increases govt expenditure; subsidy burden rises; fiscal deficit may widen | Rupee depreciation → higher fuel prices → inflation → political pressure → fiscal pressure |
| Masala Bonds | Rupee-denominated bonds issued abroad; forex risk on foreign investor → India gets foreign capital without taking currency risk | RBI promoting Masala Bonds as part of rupee internationalisation; listed on London Stock Exchange |
| Rupee Internationalisation | Goal: make INR accepted in international trade/settlements → reduces India's USD dependence → reduces depreciation vulnerability | India signed local currency settlement agreements; RBI allows INR accounts outside India; Special Vostro Accounts for trade with Russia, UAE etc. |
| Special Vostro Rupee Accounts (SRVA) | Foreign banks' rupee accounts in Indian banks; allows trade settlement in INR with select countries → reduces dollar demand | Used with Russia (since 2022 sanctions), UAE, and other countries; key rupee internationalisation tool |
| LRS (Liberalised Remittance Scheme) | USD 250,000/year outward remittance → contributes to dollar demand from India → mild depreciation pressure during high-outflow periods | RBI reviewing LRS (outflows ~$30B/year); TCS raised to reduce speculative outflows |
| ECB (External Commercial Borrowings) | Indian companies borrow in foreign currency; rupee depreciation raises repayment cost in rupee terms → corporate stress | Short-term ECBs by non-financial corps = highest share of short-term external debt |
| DXY (Dollar Index) | Measures USD strength against 6 major currencies; when DXY rises, EM currencies (including INR) generally weaken | US Fed policy drives DXY; rising DXY = rupee depreciation even if India's fundamentals unchanged |
| Brent Crude / WTI | International oil price benchmark; India's crude import bill directly linked; West Texas Intermediate (WTI) = US benchmark; Brent = global benchmark | Brent at $107–111/barrel in May 2026; India's crude import bill = ~25% of total import bill |
Rupee Internationalisation is a long-term structural solution to reduce USD-dependence. RBI's 2024–25 agenda included: (1) allowing INR accounts outside India, (2) INR lending by Indian banks to foreign entities, (3) SNRR and SRVA accounts for trade, (4) review of LRS and ECB frameworks. This reduces the structural demand for dollars and thus long-term depreciation pressure.
India's rupee hit a fresh record low, closing at ₹96.35 per USD on May 18, 2026. The rupee has fallen approximately 7% in 2026 calendar year and has emerged as Asia's worst-performing currency. FPIs pulled out close to ₹2.17 lakh crore from India's equity market in 2026 (up to May 15) — more than the ₹1.66 lakh crore withdrawn across all of 2025.
The West Asia crisis (US-Israel strikes on Iran; Strait of Hormuz closure fears) sent Brent crude from ~$80 to $120/barrel in under a week in late February–March 2026. By April 29, 2026, Brent jumped 7% in a single session to $111/barrel — the highest since June 2022. The rupee hit ₹95.33 on April 30, 2026 as a direct result. India imports 85–88% of crude, roughly half of which transits through the Strait of Hormuz.
As of May 18, 2026, Brent crude held near $107/barrel. The rupee was down more than 1.3% in a single week. US 10-year Treasury yield climbed to 4.6250%. RBI has been intervening — it has sold dollars, tightened banks' net open position limits to $100 million, and curbed parts of the non-deliverable forward (NDF) market. State-run fuel retailers raised petrol and diesel prices for the first time in four years in May 2026.
The Government stated in Parliament (Unstarred Question No. 5872, Lok Sabha) that the rupee depreciated by approximately 9% in FY 2025–26, reaching ₹93.88 per USD. Forex reserves increased to USD 709.8 billion as of March 2026, providing import cover of over 11 months. Net forex sales by RBI: USD 50.8 billion during April 2025–January 2026. Policy measures: easing ECB norms, promoting INR-based trade, strengthening export ecosystems.
The RBI is studying two additional measures: (1) Reviving an NRI dollar deposit scheme (last used in 2013 — raised $26 billion); and (2) Removing the 5% withholding tax on foreign investors in Indian government bonds (to attract fresh bond inflows). No final decision taken yet. RBI Governor Sanjay Malhotra has reiterated: intervention is about smoothing volatility, not defending any specific exchange-rate level.
Key numbers for 2026 Prelims: ₹96.35/USD (record low, May 18, 2026) · Brent crude $107–111/barrel · FPI outflows ₹2.17 lakh crore (2026 YTD) · Forex reserves $709.8B · Rupee depreciation ~10% in FY26 · RBI NOP limit: $100 million per authorised dealer. The psychological barrier being discussed: ₹100/dollar.
| Statement | ✅/❌ | Reason |
|---|---|---|
| "Rupee depreciation and rupee devaluation are the same concept." | ❌ False | Depreciation = market-driven (floating rate). Devaluation = deliberate govt action (fixed/pegged rate). India has had formal devaluations only in 1966 and 1991. |
| "FEMA 1999 makes forex violations a criminal offence." | ❌ False | FEMA treats violations as civil offences (compoundable fines). FERA 1973 had criminal provisions. Key distinction. |
| "Rupee depreciation always widens India's Current Account Deficit." | ❌ False | Depreciation makes exports cheaper → export volume should rise → CAD could narrow. However, for India, import inelasticity (crude oil is essential) means CAD often widens despite depreciation. "J-Curve" effect applies initially. |
| "REER below 100 means the rupee is overvalued." | ❌ False | REER below 100 (long-term average) = rupee is undervalued → exports MORE competitive. REER ABOVE 100 = rupee is overvalued → exports less competitive. |
| "The LRS allows corporates and HUFs to remit USD 250,000 per year." | ❌ False | LRS is available ONLY to resident individuals (including minors). Corporates, HUFs, trusts, partnership firms are NOT eligible. |
| "Rupee depreciation benefits all export sectors equally." | ❌ False | Export sectors with high import content (e.g., gems, electronics assembly) benefit LESS because their input costs also rise with depreciation. IT/pharma benefit more as their inputs are largely domestic (labour). |
| "India follows a fixed exchange rate system." | ❌ False | India follows a managed floating exchange rate since March 1993. RBI intervenes to smooth volatility, but the rate is market-determined. |
| "When NEER falls, REER always falls by the same amount." | ❌ False | REER = NEER adjusted for inflation differentials. If India's inflation is higher than trading partners, REER falls LESS than NEER (or may even rise if domestic inflation erodes cost advantage). |
UPSC's most recycled trap. Depreciation = market-driven (no government decision needed) in floating systems. Devaluation = formal government/central bank decision in fixed/pegged systems. India's 1966 and 1991 falls were devaluations. Everything since 1993 is depreciation.
A REER below 100 (or below long-term average) = rupee is undervalued = exports more competitive. Students often flip this. Think: lower REER → cheaper rupee in real terms → good for exporters. Higher REER → expensive rupee → bad for exporters.
FEMA violations = Civil (monetary fine, compoundable). FERA violations = Criminal (imprisonment possible). Many students confuse these. The shift from FERA to FEMA in 1999 was a landmark liberalisation — changed offence nature, not just procedures.
LRS = only resident individuals (including minors). NOT available to: corporates, HUFs, trusts, partnership firms, NRIs (NRIs have separate NRO/NRE account mechanisms). Limit: USD 250,000/year.
NOT entirely negative. Depreciation benefits: IT/pharma exporters (USD revenues), NRI remittances (higher rupee value), tourism (India cheaper for foreigners), some agricultural exports. Depreciation hurts: oil importers, ECB borrowers, aviation, consumers (inflation). UPSC asks for balanced analysis.
Foreign Exchange is in the Union List (Entry 36 of the 7th Schedule). This means Parliament (not State Legislatures) has exclusive power to legislate on forex regulation. FEMA and FERA were both Acts of Parliament. A favourite constitutional hook in UPSC Economics questions.
| Parameter | Figure | Context |
|---|---|---|
| Record low INR/USD | ₹96.35 | May 18, 2026 — West Asia crisis |
| Brent crude (May 2026) | $107–111/barrel | Highest since June 2022; Strait of Hormuz fears |
| FPI equity outflows 2026 | ₹2.17 lakh crore | Jan–May 15, 2026 — exceeds all of 2025 |
| Forex reserves (Mar 2026) | $709.8 billion | ~11 months import cover |
| CAD/GDP (Q2 FY26) | 1.3% | Manageable; narrowed from 2.2% in same Q FY25 |
| Crude import dependence | ~88% | India imports 85–88% of crude oil consumed |
| LRS annual limit | USD 250,000 | Per resident individual per financial year |
| REER (40-currency, Apr 2026) | 92.72 | Below long-term avg 98.25 = rupee undervalued |
| 6-currency REER record low | 89.61 | March 2026 |
| RBI forex sales (Apr25–Jan26) | $50.8 billion | Government stated in Parliament (Mar 30, 2026) |
| Rupee depreciation FY26 | ~9–10% | Govt stated ~9% in Lok Sabha (Mar 30, 2026) |
| US 10-yr Treasury yield (May 2026) | 4.6250% | Driving capital to USD from EMs including India |
| NRI deposit scheme (2013) | $26 billion raised | Being considered again by RBI in 2026 |