“Presented a copy of the Gita in Russian to President Putin. The teachings of the Gita give inspiration to millions across the world,” PM Modi wrote on X

What Has Increased Dollar Demand (Why USD demand rose)
—>Widening trade deficit: Imports rising faster than exports; US tariffs made Indian goods less competitive.
—>FPI outflows: Investors selling Indian assets to chase higher US returns; global risk-off sentiment.
—>Debt servicing & remittances abroad: Corporates repaying USD loans; outward remittances for education/investments rising.
—>Speculative demand & hedging: Importers/banks buying USD forwards due to volatility; overvalued REER encouraged correction bets.


What Has Reduced Dollar Supply (Why USD inflow fell)
—>US tariffs & trade tensions: Hurt Indian exports; no new trade deal.
—>Weak FDI inflows: Global uncertainty slowed new investments.
—>Modest remittances & services receipts: Steady but not surging.
—>RBI’s limited intervention: Selling fewer dollars, allowing rupee depreciation.

#GS1mains

Why is the rupee weak even when the Indian economy is strong?

The rupee is weakening not because India’s economy is weak, but because external-sector pressures outweigh domestic strength.
A large trade deficit, FPI outflows, higher USD debt repayments, and hedging have sharply increased dollar demand, while US tariffs, weak FDI, moderate remittances, and limited RBI intervention have reduced dollar supply.
Thus, exchange rate pressure is arising from global and trade dynamics- not from India’s GDP performance.

PM inaugurated India’s first private sector satellite (Vikram-1) and a new private rocket manufacturing & design facility of Skyroot Aerospace in Hyderabad.

Infinity Campus becomes India’s largest private rocket manufacturing facility, enabling 1 Vikram rocket/month.