India’s macroeconomic dashboard flashes two contrasting lights at the same moment. The green signal: real GDP growth soared to 8.2 percent in Q2 FY26, the fastest in six quarters and far above expectations. The red signal: the rupee slipped past 90 per US dollar in December 2025, losing almost 8 to 9 percent of its value since July.

For many citizens, this contradiction feels personal. People hear that the economy is booming, yet imported medicines and electronics are getting costlier. Investors see upbeat growth forecasts but a currency that behaves like a stressed emerging market. And policymakers face a world where domestic strength is overshadowed by external fragility.

The truth is that there is no contradiction. India’s rising GDP and falling rupee are two sides of the same structu

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