Re has lost 10% value this year

But even as the government was patting itself on the back for the doubledigit growth in the manufacturing sector, the rupee also plunged to hit and close at 71 against the US dollar for the first time ever. Weakness in the dollar is good for exporters but rupee depreciation combined with a widening current account deficit is likely to increase the borrowing costs of corporates.

The rupee hitting an alltime low prompted the Congress on Friday to issue a wake-up call to the Modi government, calling for a belated course correction to save the economy from imminent disaster.

"Rupee is in ICU. Modi government is in its last lap. All the loudmouth tall promises of Narendra Modi during the 2014 Lok Sabha elections have disappeared from the BJP’s narrative," pointed out Congress chief spokesman Randeep Singh Surjewala.

"No matter how many alibis the BJP comes up with, the naked truth is that the Modi government has systematically weakened our economy. Deliberate accidents like the disastrous demonetisation, a flawed GST, weakening of the banking sector and ‘Tax Terrorism’ are squarely responsible for this," he said.

The prime minister's flawed economic policies resulted in the Rupee losing almost 10% of its value in 2018, Surjewala said. He said Rupee has become Asia’s weakest currency under the NDA dispensation, even as many Asian currencies have, in fact, appreciated during the same period.

It was further pointed out that the Current Account Deficit could go up to 2.8% of the GDP for FY19, compared to 1.9% in FY18, due to the widening trade deficit.

Since the implementation of a flawed and ill-conceived GST, the Current Account Deficit has continuously fallen and never recovered.

Likewise, foreign Investors are losing confidence in government policies and incoming FDI, since April, 2018 is on a downward spiral; this would lead to a further weakening of rupee!