Venugopal Garre flags structural weakness in capital flows, urges long-term reform push

May 21, 2026

External geopolitical factors are pressuring the rupee, not domestic economic mismanagement. This requires careful policy handling to avoid destabilizing sentiment. Continued weakness could become inflationary and impact market confidence. Attracting sustained capital inflows needs a focus on emerging technologies and innovation-led sectors. Structural changes are essential for long-term stability and growth.

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