Anytime the numbers disappoint, the prime minister rolls out the latest version of his party’s ad campaigns. Most recently, this has been a Goldilocks moment for growth. Yet Modi is being confronted by an economic indicator he can’t explain away: a chronically weak rupee.India’s currency was Asia’s worst performer in 2025, falling 5%. That trajectory has carried over into this year at a disastrous moment for the most populous nation, as surging oil pricesshake up the global economy.
The rupee has lost another 5.5% since January 1. And given that India is near the top of the list of current-account-deficit economies, the rupee remains “particularly vulnerable to further depreciation,” says economist Priyanka Kishore at Asia Decoded.