Union Finance Minister Nirmala Sitharaman, speaking at the Bloomberg New Economy Forum 2026, affirmed that the Reserve Bank of India (RBI) will continue to implement targeted measures to prevent excessive volatility in the Indian rupee, attributing the currency’s recent depreciation over the past year primarily to prevailing external and global challenges. Acknowledging the extent of the rupee’s downward movement over the last 18 to 24 months, Sitharaman clarified that the central bank’s operational focus centers squarely on curbing sharp and disruptive fluctuations rather than attempting to anchor the exchange rate at any specific predetermined level. She strongly emphasized India’s robust macroeconomic fundamentals and substantial foreign exchange reserves, asserting that these core economic buffers should reassure domestic and international investors of the nation’s unwavering commitment to fiscal discipline and enduring economic stability. Reaffirming the government’s fiscal stance, she noted that authorities will maintain a disciplined approach while simultaneously safeguarding critical public expenditures directed toward essential welfare programs, education, and healthcare initiatives. Addressing queries regarding potential modifications to capital gains taxation, Sitharaman declined to provide immediate commitments on prospective changes to long-term capital gains (LTCG) tax or the securities transaction tax (STT), explaining that formal preparations for the upcoming Union Budget are already underway and that commenting prematurely would be imprudent. However, she noted that the administration remains fully receptive to ongoing discussions with domestic and overseas investors concerning the taxation of diverse asset classes and is open to evaluating constructive suggestions. Turning to the nation’s industrial aspirations, Sitharaman defended India’s ambitious semiconductor strategy against skepticism, asserting that the country is adopting a balanced, practical approach by pursuing opportunities across both cutting-edge advanced chip manufacturing and legacy semiconductors essential for everyday consumer products. She maintained that these strategic initiatives, combined with strong fiscal governance, position India favorably to navigate global uncertainties while fostering sustainable long-term economic growth and technological self-reliance.
Sitharaman Defends India’s Pragmatic Semiconductor Strategy and Reassures Investors on Fiscal Discipline
