Leader of Opposition Rahul Gandhi on Saturday cautioned that India could be headed towards a fresh bout of inflation, citing the weakening rupee and rising industrial fuel prices amid the ongoing US-Israel conflict with Iran.
“The rupee weakening against the dollar and heading towards 100, along with a sharp rise in industrial fuel prices — these aren’t just numbers; they’re clear signals of the inflation to come,” he wrote on X.
His remarks followed the rupee’s sharp fall of 64 paise to an all-time low of 93.53 against the US dollar, driven by rising crude oil prices and a broader risk-off sentiment among global investors.
‘Direct Impact On Every Household’
Gandhi said the currency depreciation and fuel price surge would have a cascading impact across the economy, adding that while the government may term it “normal”, it does not reflect the “reality”.
- He outlined the likely consequences:
- “Production and transport will become more expensive;
- MSMEs will be hit the hardest;
- Prices of everyday items will go up; and
- FII money will flow out even faster, putting more pressure on the stock market.”
“And it’s just a matter of time—after the elections, prices of petrol, diesel, and LPG will be hiked too,” he added, referring to upcoming Assembly elections in West Bengal, Assam, Kerala, Tamil Nadu, and the Union Territory of Puducherry.
Targets Centre Over ‘Lack Of Strategy’
Taking aim at the government, Gandhi said it lacked a clear roadmap to address emerging economic challenges.
“The Modi government has neither direction nor strategy – just empty rhetoric. The question isn’t what the government is saying – it’s what’s left on your plate,” he said.
LPG Concerns Add To Pressure
The concerns come amid disruptions linked to the West Asia conflict, which have driven up energy costs and raised fears of supply constraints.
The Ministry of Petroleum and Natural Gas has urged commercial LPG users to switch to piped natural gas where possible to ease pressure on cylinder supplies. Despite assurances of adequate stock, reports of panic buying and long queues at LPG depots have emerged in several regions.
Kerala has been particularly affected, with the LPG crunch forcing some restaurants and hotels to temporarily shut operations earlier this month.
Shashi Tharoor Points To Global Factors
Senior Congress leader Shashi Tharoor attributed the rupee’s fall to external pressures, stating it is “because of international forces beyond our government’s control”.
He added that the situation should put into perspective similar currency movements during the Congress-led UPA era and said the current government should have the “grace” to withdraw its earlier criticism of past administrations over rupee depreciation.
