There is no problem.

"Strong growth, low inflation and robust foreign exchange reserves will help India tide over the disruptions caused by the West Asia war, even as the energy crisis has made investors nervous, according to Ben Powell of BlackRock Investment." Mint. As a result of the nervousness, "Foreign investors are withdrawing funds from India at an unprecedented pace. In the 27 days of March alone, foreign portfolio investors sold equities worth over $13 billion (Rs 1.1 trillion), the largest monthly outflow on record." The rupee has fallen from Rs 83 per dollar in early 2024, and from 90.95 on 27 February 2026, to 94.65 per dollar on 30 March 2026. Ind Tod. Prof Ashima Goyal felt that, even with oil at $100 per barrel, India was in a "good space". "What we need to understand is if you deflated it by the GDP deflator or the consumer price index, then this $100 is equal to $56 today," and economic growth will be 7% in FY27 and 6% in FY28, she said. FPI "outflows in FY26, at $16.4 bn, are the highest in 28 years," "India is likely to have BoP (balance of payments) deficit for 3 successive years beginning in FY25 (before Gulf conflict), and possibly a capital account and current account deficit for the first time since 1991," and "India's goods and services trade deficit has expanded at $110 billion from $90 billion in the first 11 mths of current fiscal," wrote Soumya Kanti Ghosh. However, our macro fundamentals are strong so a Brics+ currency, instead of the dollar, and India's SFMS (Structured Financial Messaging System), possibly instead of the SWIFT, or Society for Worldwide Interbank Financial Telecommunication (wikipedia) should manage the crisis. "India's central bank, the Reserve Bank of India (RBI) has proposed that BRICS countries link their respective official digital currencies to facilitate cross-border trade financing and tourism sector payments," to bypass the dollar. IDN. If digital currencies are linked how will the RBI manage the rupee's exchange rate? "The RBI's unorthodox move to steady the rupee by forcing banks to unwind foreign exchange positions beyond $100 million will prevent its slide towards 95," but "The move will also cause banks with large open positions to lose money." TOI. How can the RBI force private, and even foreign, banks to incur losses? Can banks sue the RBI? In 1991, the RBI had to pledge 47 tons of gold with the Bank of England and 20 tons with the Union Bank of Switzerland to raise $600 million and the Government of India required an emergency loan of $7 billion from the International Monetary Fund to deal with a BoP crisis. wikipedia. In the week ended 20 March 2026, the RBI sold gold worth $13.495 billion so that India's foreign exchange reserves dropped by $11.413 billion to $698.346 billion. whalesbook. In addition, the Finance Minister Nirmala Sitharaman expects the RBI to transfer Rs 3.16 trillion as dividend this year. MC. Will the RBI sell more gold to obey the FM? With assembly elections in Assam, West Bengal, Kerala and Tamil Nadu in one month's time (wikipedia), the government has cut excise duty on petrol and diesel by Rs 10 each, to keep retail prices unchanged, but has imposed a Rs 21.5 tax on exports of diesel and a Rs 29.5 on exports of aviation turbine fuel (ATF). newsonair.gov.in. Goodbye foreign oil companies. Before Bihar Assembly election in 2025, Prime Minister Narendra Modi transferred Rs 10,000 to bank accounts of 7.5 million women in Bihar at a cost of Rs 75 billion. pib.gov.in. Subsidies and cash transfers cost the Union government Rs 6.33 trillion in 023-24, up from Rs 2.76 trillion in 2018-19, wrote Aditya Sinha. Women of West Bengal, Kerala and Tamil Nadu may be expecting Rs 15-20,000 from Mr Modi before the elections. Sell more gold. No problem.