India may need rate hikes, tax cuts to support rupee, analysts say

Analysts say India may require a combination of monetary and fiscal measures to stabilize the rupee against further depreciation. The Reserve Bank of India could raise its emergency lending rate for banks, which would make funds more expensive and reduce liquidity in the financial system, helping support the currency.

Experts have flagged concerns over rupee weakness and suggest the central bank may need to use tighter monetary policy tools alongside government fiscal interventions. Tax cuts or other fiscal measures could also play a role in stabilizing economic conditions and supporting the rupee.

The suggestions come amid ongoing pressure on the currency. Analysts believe a coordinated approach between the RBI and the government would be needed to address rupee volatility and maintain macroeconomic stability.