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Mr Dipankar Dasgupta, former professor of Indian Statistical Institute (ISI), on Friday said ‘ non-oil import deficit' might be a reason for rupee depreciation.
“Significant rise of non-oil import deficit vis-à-vis oil import deficit could be a second reason for rupee depreciation,” Mr. Dasgupta said while addressing an interactive session on impact of falling rupee against the US dollar, organised by Bharat Chamber of Commerce here.
Even if deficit in oil import was usually considered as one of the main reasons behind the depreciation of rupee, deficit in non-oil segment exceeded the oil import deficit in 2011-12, he pointed out.
Restricting Forex
Prof Abhirup Sarkar of ISI said the government may think of restricting the outflow of foreign currency for some time as a cautionary measure.
According to Prof Sarkar, it would not be wise to empty the country's forex reserve without prior need until the rupee depreciation crisis eases a bit.
> ayan.pramanik@thehindu.co.in
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