ASSOCHAM, one of India's oldest industry chambers, on Monday, 19 October 2026, expressed full support for coordinated measures by the Reserve Bank of India (RBI) and the Finance Ministry to stabilise the rupee and restore foreign portfolio investor (FPI) confidence. The chamber said policymakers were on the right track to attract durable, fundamentals-backed capital flows amid persistent global uncertainty.

What Prompted the Statement

ASSOCHAM President Nirmal K. Minda said the body appreciated the coordinated approach of the RBI and the government in maintaining macroeconomic stability. His remarks were a direct response to recent observations by former RBI Governor D. Subbarao, who had argued that the rupee's long-term strength would hinge on India's ability to attract sustained capital flows supported by solid economic fundamentals.

'We fully align with Dr. Subbarao's emphasis on durable flows based on fundamentals, and note with appreciation the steps already taken by the government and the RBI,' Minda said.

Key Measures Welcomed by Industry

The chamber pointed to the successful completion of the $133 billion FCNR(B) mobilisation window that closed on 31 August as evidence that these measures had helped the rupee recover from recent lows. Among the Finance Ministry's steps, ASSOCHAM specifically welcomed the Income-tax Amendment Ordinance, 2026, which exempts FPI investments in government securities from taxes on interest income and capital gains with effect from 1 April 2026.

The chamber also welcomed Finance Minister Nirmala Sitharaman's recent indication that investor feedback on long-term capital gains tax (LTCG) and securities transaction tax (STT) would be factored into consultations for the 2027-28 Budget.

Macroeconomic Fundamentals Cited as Supportive

ASSOCHAM Chief Economist S.P. Sharma said India's macro backdrop remained robust, citing healthy foreign exchange reserves, the RBI's projected GDP growth of 7.1 per cent for FY27, and efforts to keep inflation in check through calibrated monetary tightening. This comes amid a broader global environment where central banks in advanced economies continue to navigate a difficult balance between growth and price stability.

Industry's Asks Going Forward

Despite the broadly supportive tone, ASSOCHAM called for continued tax rationalisation, simpler interpretation of tax provisions, and specific measures to incentivise longer-term equity investment over short-term speculative flows. The chamber said it would continue working with the government, the RBI, and market regulator Securities and Exchange Board of India (SEBI) to strengthen India's positioning as a preferred destination for long-term global capital.

Notably, this coordinated policy signalling comes at a moment when several emerging-market currencies have come under pressure from a stronger dollar and elevated US yields — making India's proactive stance a potential differentiator in attracting institutional flows.