Lok Sabha Question No. 244 (UNSTARRED), answered on 2026-02-02
Subject: Impact of Currency Stabilisation Measures and Capital Outflows
Ministry: FINANCE
Asked by: Thiru Dr. S Jagathratchakan

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 244

TO BE ANSWERED ON 02.02.2026

## IMPACT OF CURRENCY STABILISATION MEASURES AND CAPITAL OUTFLOWS

## 244. Shri S Jagathratchakan:

Will the Minister of Finance be pleased to state:

- (a) the amount spent by the Reserve Bank of India during the last 12 years to stabilise the Indian Rupee against the US Dollar, year-wise;
- (b) whether recent changes in tariff policies, domestic or global, have had any impact on the value of the Rupee and foreign exchange stability and if so, the details thereof;
- (c) the extent of net outflows by Foreign Institutional Investors (FIIs) from the Indian markets during the said period and their impact on the Rupee; and
- (d) the steps being taken by the Government and the RBI to manage currency volatility and mitigate the impact of capital outflows?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY)

- (a)   The details of the Reserve Bank of India's (RBI) foreign exchange market interventions during the last 12 years have been given below:

| Year                      |   Net sale (-) / purchase (+) of USD (USD Billion) |
|---------------------------|----------------------------------------------------|
| 2014                      |                                              32.48 |
| 2015                      |                                              36.58 |
| 2016                      |                                               9.35 |
| 2017                      |                                              27.98 |
| 2018                      |                                             -15.88 |
| 2019                      |                                              40.27 |
| 2020                      |                                              87.74 |
| 2021                      |                                              33.35 |
| 2022                      |                                             -46.24 |
| 2023                      |                                              18.14 |
| 2024                      |                                             -12.35 |
| 2025 (upto November 2025) |                                             -41.69 |

Source: RBI

- (b)   Changes in tariffs applied by trading partner countries can influence trade flows and, in turn, have a bearing on the trade balance and the demand for currency, influencing exchange rate. However, the exchange rate of the Indian Rupee (INR) is influenced by various domestic and global factors, including, inter alia , movement of the Dollar Index, trend in capital flows, level of interest rates, movement in crude prices, and the current account deficit, etc. Thus, the impact of tariff policies on the exchange rate movement cannot be isolated.
- (c)    As stated in (b), capital flows are one of the factors influencing exchange rate movements of the INR. The net inflows/outflows by FPIs from the Indian markets during the past 12 years are given below:

|   Year |   Net FPI Inflows (+) / Outflows (-) (in USD Billion) |
|--------|-------------------------------------------------------|
|   2014 |                                                 42.69 |
|   2015 |                                                 10.6  |
|   2016 |                                                 -3.19 |
|   2017 |                                                 30.78 |
|   2018 |                                                -11.33 |
|   2019 |                                                 19.41 |
|   2020 |                                                 14.04 |
|   2021 |                                                  7.07 |
|   2022 |                                                -17.94 |
|   2023 |                                                 28.7  |
|   2024 |                                                 19.94 |
|   2025 |                                                -11.84 |

Source: NSDL

- (d)    The value of the INR is market-determined, with no target or specific level or band. The RBI regularly monitors the foreign  exchange  market  and  intervenes  in  situations  of  excess  volatility.  Further,  the  RBI monitors key developments across the globe which may have an impact on USD-INR exchange rate. Among others, it includes monetary policy actions of the major Central Banks, major economic data releases across the globe and their impacts thereof, OPEC+ meeting decisions, tracking, and analysing geo-political events, daily movements in G-10 and EME currencies, etc. Some of the measures taken by the RBI recently to enhance foreign exchange inflows and better the ease of doing business, inter-alia , include:
-  Relaxation in repayment of export credit was provided to exporters in November 2025 whereby the maximum credit period was enhanced from one year to 450 days for pre-shipment and post-shipment export credit disbursed till March 31, 2026.
-  In October 2025, the time period for forex outlay was increased from four months to six months in case of Merchanting trade transactions. Separately, Authorised Dealer banks were allowed to lend in Indian Rupees to a person resident outside India in Bhutan, Nepal or Sri Lanka, including a bank in these jurisdictions for cross border trade transactions.
-  In August 2025, persons resident outside India that maintain a Special Rupee Vostro Account for international  trade  settlement  in  INR  were  permitted  to  invest  their  rupee  surplus  balance  in  the aforesaid accounts in Central Government Securities (including T-Bills).

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