Dealing with the rupee

When P Chidambaram returned to the finance ministry last August, one of the questions he posed to his political colleagues was: what is your strategy if the rupee touches 60? This is what convinced the reluctant party to back the planned burst of reforms. To take the most pressing case of petroleum under-recoveries, a one rupee fall in the value of the dollar—it has fallen by 9% since January—raises under-recoveries by R9,000 crore in a full year.

Read Full Story>>