Uday Kotak on Rupee Valuation and Indian Economic Competitiveness

Uday Kotak stated that the rupee should be allowed to find its own level, asserting that the true strength of the Indian economy will eventually be reflected in the currency. He suggested that the current situation signals for India to strengthen its competitiveness, improve efficiency, and invest more in research and innovation. Kotak noted that recent pressure on the rupee was driven by portfolio investment outflows rather than the current account.

Kotak emphasized that policymakers should avoid setting specific currency levels to prevent market speculation. His comments link currency valuation directly to the need for structural economic improvements and increased market confidence.