India's productivity gains persist as the rupee looks to be undervalued, not overvalued

The stability of the rupee's exchange rate has led to a debate on whether it is overvalued or undervalued. While some measures suggest overvaluation, others indicate undervaluation. Adjustments for productivity growth and macroeconomic balance approaches imply the rupee may be undervalued by around 6%, easing concerns about its impact on the economy.