Parliamentary panel plans to discuss effect of rupee depreciation on trade

New Delhi, November 1

A parliamentary panel has decided to discuss the implications of rupee’s depreciation on trade, despite opposition from its BJP members, sources said.

The Parliamentary Standing Committee on Commerce, chaired by senior Congress leader Abhishek Manu Singhvi, met for the first time on Monday after reconstitution and deliberated on the subjects that need to be taken up for discussion, they said.

During the meeting, Singhvi proposed that the implications of the rupee’s depreciation on trade be discussed.

His proposal was strongly opposed by BJP MP Nishikant Dubey, a panel member, who said the depreciation was temporary and the panel should discuss subjects such as balance of trade, which have long-term implications.

Dubey was supported by several other BJP MPs such as Raju Bista, Rajkumar Chahar and Deepak Prakash.

Almost all opposition MPs were in favour of taking up the matter, saying it was an important subject which needed wide discussions and studies.

The panel is likely to call trade bodies and top government officials to deliberate on this issue, sources said.

The rupee has been under pressure since the beginning of this year, in tandem with other emerging market currencies in the aftermath of rate hikes by the US Federal Reserve sparked foreign fund outflows.

The domestic currency plunged to its lifetime low of 83 against the US dollar earlier in October and it continues to remain above Rs 82.