The rupee is expected to weaken to Rs 97 per dollar by FY27-end and Rs 99 by FY28-end, BMI said. Elevated energy prices, global risk aversion and interest-rate differentials will pressure the currency, while capital inflows and remittances may cushion depreciation
The government is targeting a deficit between revenue it earns and what it spends at 6.8 per cent of the gross domestic product (GDP) in FY22 (April 2021 to March 2022).