Abhishek Banerjee: Rupee to reach 85 by 2026 on market reforms

• Abhishek Banerjee forecasts the Indian rupee to strengthen to 85 by 2026, driven by bond market opening, increased MSCI weight, and reduced oil import reliance.
• The RBI's inflation-targeting mandate allows policy decisions when inflation is below 4%, potentially leading to further rate cuts.
• Trade uncertainty and relentless selling by FPIs and FDIs are major factors contributing to the rupee's current depreciation.
• India has significant opportunities in precision manufacturing, engineered products, and pharmaceuticals, rather than heavy manufacturing.
• Banerjee is bullish on both US and Indian markets for 2026, citing various domestic factors supporting Indian equities.

Why It Matters: This explains India's economic future, rupee strength, and investment outlook.