Leader of the Opposition in the Lok Sabha and Congress leader Rahul Gandhi on Saturday criticized the central government and expressed concern over the falling value of the Indian rupee and rising prices of industrial fuel amid the escalating conflict in West Asia.
Rahul Gandhi warned about inflation in the future and said that the government led by Prime Minister Narendra Modi is making empty promises instead of a clear economic strategy. His comments came after the rupee fell below 93 against the US dollar on Friday, indicating continued pressure on the domestic currency.
“The weakening of the rupee against the dollar and its move towards 100, as well as the sharp rise in industrial fuel prices – these are not just statistics; these are clear signs of inflation to come,” he wrote on X.
He claimed that production and transportation would become more expensive and foreign institutional investors (FILs) would withdraw their investments from the Indian stock market.
He further said that the central government may increase fuel prices after the elections in four states and one union territory.
He further said, “The government may call it ‘normal’, but the reality is that production and transportation will become costlier. Small and medium enterprises (MSMEs) will be the most affected. Prices of everyday goods will rise. Foreign currency will flow out of the country even faster, putting further pressure on the stock market. In other words, it is sure to have a direct and deep impact on the pockets of every family. And it is just a matter of time – after the elections, the prices of petrol, diesel and LPG will also increase.”
The post read, “The Modi government has neither a direction nor a strategy – just empty promises. The question is not what the government is saying – the question is what challenges you face.”
Earlier on Friday, the Indian rupee weakened further against the US dollar and breached the 93-mark in early trade, hitting a new historic low amid the ongoing conflict in West Asia and continued foreign currency outflows.
On Friday, the rupee opened at a record low of 92.89 against the dollar and soon fell further to cross the 93 level, indicating continued pressure on the domestic currency.
Meanwhile, industrial diesel prices have also increased by 25 per cent, from Rs 87.67 per liter to Rs 109.59 per litre.
The development comes in the backdrop of rising tensions and conflict that began after the assassination of Iran’s 86-year-old Supreme Leader Ayatollah Ali Khamenei in joint military strikes by the US and Israel on February 28.
Iran retaliated by targeting Israeli and US targets in several Gulf countries and Israel, causing disruption to the waterway and disrupting international energy markets and global economic stability.
