New Delhi/Mumbai: Amidst the fall of rupee, Commerce and Industry Minister… Piyush Goyal Said on Thursday that the government is considering several measures to control the rising current account deficit (CAD). “We are monitoring the situation. All different arms of the government are working as a team. Several steps are being considered. The situation globally is quite challenging, but we have confidence and conviction that we will emerge victorious even in these challenging times,” Goyal told reporters. Stating that the government has no plans to cut non-essential imports, the minister said the public has been urged to be more conscious on products that are dependent on imports.

A few days ago, PM Narendra Modi had urged citizens to postpone gold purchases and avoid destination weddings abroad. Gold imports rose 24% to an all-time high of $72 billion during the last fiscal year, although volumes fell 4.8% to 721 tonnes. Silver imports surged 150% last year to $12 billion, with volumes up 42% to 7,335 tonnes. The government has increased the import duty from 6% to 15%. “With the oil trade deficit likely to widen and potential pressure on remittances from West Asia, we estimate India’s current account deficit (CAD) to widen to 2.2% from an estimated 0.8% last fiscal,” CRISIL economists led by DK Joshi said in a recent analysis. While the trade deficit was driven by rising gold and silver prices last year, the oil shock and withdrawal of portfolio investments following the West Asia conflict resulted in a sharp weakness in the rupee, which hit 97 against the dollar on Wednesday. However, on Thursday it closed 62 paise higher at 96.20 due to central bank intervention and fall in crude oil prices. The Indian currency is one of the worst performers in Asia, losing about 7% of its value so far in 2026. Dealers said the rupee opened 50 paise stronger and was boosted by heavy duty intervention by RBI on public sector banks. “The rupee’s recovery is currently being driven more by profit-booking and softer crude prices rather than any major structural reversal, although lower oil prices may continue to provide temporary relief to the currency,” said Jatin Trivedi, research analyst at LKP Securities. A weak rupee is bad news for imports, especially crude oil, as it could push domestic inflation. “This external energy shock has upset the macro-apple cart and kept the rupee under pressure. Compared to previous crises, India’s external balance is starting from a much stronger position, especially in terms of current account stability and foreign exchange reserves,” DBS economist Radhika Rao and foreign exchange strategist Philip Lee said in a note on Wednesday.