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What is the story about?
The recent depreciation of the rupee is a concern, but it also presents an opportunity to attract foreign investment into India, Sunil Kant Munjal, Chairman, Hero Enterprise, said in an interview with CNBC-TV18, as global volatility intensifies amid the ongoing West Asia conflict.
Munjal noted that the currency is “hovering around 95” against the US dollar and cautioned that it could “breach 100 if the situation persists for four to six months”. However, he emphasised that the depreciation should not be viewed only as a negative development.
“Currency is clearly a concern… but we should also look at whether we can turn this into an advantage,” he said, adding that a weaker rupee makes India more attractive for foreign investors. “For foreign investors, India becomes cheaper, and their money goes further,” Munjal said, underlining the need to position India’s consumption story and demographic strengths more aggressively.
He argued that India must use the current environment to push for stronger capital inflows, even as global uncertainty remains elevated due to geopolitical tensions and rising energy prices. According to him, the focus should be on identifying “where the upside lies” despite near-term challenges.
Munjal also pointed out that while the depreciation is real and carries risks, particularly if it persists, it can support investment momentum if leveraged effectively. He flagged that steps taken by the Reserve Bank of India to limit positions held by banks could also have an impact as those positions unwind.
Also Read | Industry will step up to support prices, availability, jobs amid energy disruption: CII's Mukundan
His comments come at a time when global markets are on edge due to the continuing conflict in West Asia, with oil prices holding above $100 a barrel and raising concerns around inflation, trade balances and growth. In India, these pressures are expected to widen the current account deficit and weigh on macroeconomic stability.
Against this backdrop, Munjal stressed the importance of balancing risks with opportunity. “While depreciation is real and concerning, we need to find opportunities within these challenges,” he said, reiterating that attracting foreign investment should remain a key priority for policymakers and industry alike.
Munjal noted that the currency is “hovering around 95” against the US dollar and cautioned that it could “breach 100 if the situation persists for four to six months”. However, he emphasised that the depreciation should not be viewed only as a negative development.
“Currency is clearly a concern… but we should also look at whether we can turn this into an advantage,” he said, adding that a weaker rupee makes India more attractive for foreign investors. “For foreign investors, India becomes cheaper, and their money goes further,” Munjal said, underlining the need to position India’s consumption story and demographic strengths more aggressively.
He argued that India must use the current environment to push for stronger capital inflows, even as global uncertainty remains elevated due to geopolitical tensions and rising energy prices. According to him, the focus should be on identifying “where the upside lies” despite near-term challenges.
Munjal also pointed out that while the depreciation is real and carries risks, particularly if it persists, it can support investment momentum if leveraged effectively. He flagged that steps taken by the Reserve Bank of India to limit positions held by banks could also have an impact as those positions unwind.
Also Read | Industry will step up to support prices, availability, jobs amid energy disruption: CII's Mukundan
His comments come at a time when global markets are on edge due to the continuing conflict in West Asia, with oil prices holding above $100 a barrel and raising concerns around inflation, trade balances and growth. In India, these pressures are expected to widen the current account deficit and weigh on macroeconomic stability.
Against this backdrop, Munjal stressed the importance of balancing risks with opportunity. “While depreciation is real and concerning, we need to find opportunities within these challenges,” he said, reiterating that attracting foreign investment should remain a key priority for policymakers and industry alike.
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