New Delhi, Dec 4 (NationPress) During Zero Hour in the Rajya Sabha on Thursday, Congress MP from Madhya Pradesh Vivek Tankha expressed grave concern about what he termed the “freefall of the Indian rupee” and the escalating economic distress impacting everyday citizens throughout the nation.

Labeling the issue as “extremely topical and urgent”, Tankha highlighted that the currency’s significant decline is causing extensive financial strain on families, enterprises, and crucial economic sectors.

He pointed out that the rupee has plummeted past Rs 90 per US dollar -- ranging between 90.14 and 90.19 -- marking the lowest level in India’s history. Over the last five years, he indicated that the rupee has lost between 20 per cent and 27 per cent of its value, effectively diminishing the purchasing power of people’s income by nearly one fourth. In global terms, the rupee has dropped 5 per cent this year alone, its steepest decline since 2022, positioning it as one of Asia’s worst-performing currencies in 2025.

Tankha further noted that India recently recorded a monthly trade deficit exceeding USD 40 billion, emphasizing how sharply imports surpass exports. Concurrently, foreign investors have retreated, withdrawing more than USD 17 billion from Indian markets this year -- the largest outflow in several years -- which has drained capital and weakened investor sentiment.

“FDI flows are stagnant, external borrowings have slowed, and the world is becoming increasingly wary of India’s external stability,” Tankha cautioned.

Stressing the direct implications for citizens, he remarked that each instance of rupee depreciation makes imports more expensive, and India is heavily reliant on imported fuel, cooking gas, electronic machinery, and medicines. A 5 per cent drop in the rupee, he elucidated, raises inflation by 30-35 basis points.

“Every household ends up paying more. Food prices rise, transport costs increase, and a chain reaction ensues that impacts the less fortunate the most,” he stated.

The middle class, he added, is also feeling the pressure as the costs of smartphones, laptops, medical equipment, school supplies, clothing, and household appliances rise due to India's reliance on imported components.

“For the common person, a declining rupee feels like a salary cut without the employer informing you. Your money buys less every day,” he commented.

Tankha also called attention to the strain on Micro, Small and Medium Enterprises (MSMEs), many of which depend on imported raw materials. These businesses are grappling with a 20-30 per cent increase in input costs, further squeezing already slim margins.

The cost of machinery imports has surged, hindering expansion and jeopardizing jobs. He pointed out that exporters are not benefiting from the weaker rupee because major export sectors -- including textiles, chemicals, and engineering goods -- heavily rely on imported intermediaries.

“Small manufacturers find themselves facing a double blow: elevated costs and reduced demand,” he said.

Businesses with foreign currency loans are also struggling, with repayment costs increasing by 15-20 per cent due to the rupee’s depreciation, undermining corporate balance sheets and threatening financial stability.

A declining rupee, Tankha added, deters overseas investors, creating a “vicious cycle” where diminishing confidence exacerbates currency pressure. “As the rupee declines, investors withdraw, and markets shift,” he warned.

Tankha urged the government to acknowledge the gravity of the situation and implement immediate corrective measures to stabilize the currency and protect vulnerable sectors of the economy.