Mumbai, Jan. 29 -- The Economic Survey document noted that the Indian rupee underperformed in 2025. India runs a trade deficit in goods. Its net trade surplus in services and remittances is not enough to offset it. India depends on foreign capital flows to maintain a healthy balance of payments. When they run drier, rupee stability becomes a casualty, it noted. The rupee's valuation does not accurately reflect India's stellar economic fundamentals. In other words, the rupee, therefore, is punching below its weight, the Survey stated as INR holds near record low of around Rs 92 per dollar mark currently.

It does not hurt to have an undervalued rupee in these times, as it offsets to some extent the impact of higher American tariffs on Indi...