New Delhi, Feb. 2 -- India's Chief Economic Adviser V. Anantha Nageswaran on Tuesday said that boosting the manufacturing sector is crucial for strengthening the rupee over the medium term and for bringing down the cost of capital in a meaningful manner. He noted that countries with strong and stable currencies have typically built competitive niches in manufacturing, which in turn supports currency stability and lower financing costs.

"From the medium term perspective, the way we address the rupee's value is through boosting manufacturing," Nageswaran said at the Confederation of Indian Industry's (CII) post-budget interactive session with the Ministry of Finance. "Manufacturing matters if you are looking at a long-term reputation as a ...