India's economy has doubled since before the pandemic, but a weakening rupee is slowing growth in dollar terms. Here's why the $5 trillion economy target remains difficult to achieve.

The rupee trap for a $5 trillion economy?

The Indian rupee is under intense pressure as soaring oil prices and a stronger U.S. dollar push the currency to fresh record lows. The rupee has already fallen nearly 6.5% against the dollar in 2026, sparking fears that it could eventually test the psychological 100-per-dollar mark. In this report, we examine what’s driving the rupee’s decline, how rising crude prices are worsening India’s trade deficit, and what it means for inflation, imports, and the Indian economy.

Oil Shock Sends Rupee to Record Lows

India and Sri Lanka stepped up their talks to proceed with trade in Indian Rupee as New Delhi and Colombo look set to expand their bilateral cooperation in "power and energy sector as well as aspects relating to Rupee trade".

India steps up rupee's internationalisation for Sri Lanka's economic recovery

The dominance of US dollar in global trade is facing a significant challenge as emerging global economies, such as China and India, step forward to trade in their own currencies.

BRICS common currency soon? India, China step up to counter US dollar's dominance

The rupee appreciated by 26 paise to 69.00 against the US dollar in early trade Tuesday driven by the weakening of the greenback in overseas markets and sustained foreign fund inflows.

Rupee rises 26 paise to 69.00 against US dollar

The rupee appreciated by 31 paise to 69.39 against the US dollar in opening trade Monday, driven by easing crude prices and a higher opening in domestic equities.

Rupee rises 31 paise to 69.39 against US dollar

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