ISAS Briefs

The Indian Rupee's (INR) sudden slide has created panic in the business and policy circles. The major concerns are over whether the almost free-fall will adversely affect the Current Account Deficit (CAD) and inflation. There are also concerns over whether a depreciating rupee will increase the fiscal deficit by increasing expenditure on subsidies and jeopardise the repayment schedule for external commercial borrowings (ECBs).