Part 3/8:
The RBI has had to intervene directly in the foreign exchange markets, a move that has strained liquidity and led to further volatility. The bank has reportedly depleted around $70 billion of its foreign reserves since October. Despite these efforts to stabilize the currency, indicators suggest that broader economic conditions continue to deteriorate.
Several sectors are particularly affected by these economic winds, including real estate and consumer durables. As the Sensex faced significant declines, it became evident that the situation was not just a minor setback but an escalating crisis. Economists warn of a potential return to pre-boom growth levels, which suggests the possibility of stagnation ahead.