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Dismissing the contention that currency devaluation encourages exports, Commerce and Industry Minister Piyush Goyal has said weakening of the rupee would not be in the nation's interest in the long run. He also said it is important for India to expand exports significantly and encourage investments to increase foreign exchange inflows into the country.

He said ‘there is a large pool of thought which believes that you need to devalue your currency so that you become competitive in export market...’ He added ‘I can assure you from my own experience and my engagements with large sections of industry across the board confirms that rupee devaluation or weakening our currency is actually detrimental to our nation's interest, to our growth story and to our ability to be competitive in the long run.’

The minister also said that devaluation increases cost of imports, brings inflation into the country, pushes up interest cost and makes products uncompetitive as India is import-dependent for raw materials. He added that healthy exports, investments and remittances help in growing foreign exchange reserves, which stand at over $600 billion. He noted that export helps in earning precious foreign exchange and keeps the rupee stable.

He further said exports during April 1-14 have increased to $18.5 billion. He added India's pharma exports hold huge potential and can increase to $200 billion in the coming years. On free trade pacts, he said these agreements are ‘two-way traffic’ and help both sides.