Neelkanth Mishra, the newly appointed Executive Director at the World Bank, has characterized the ongoing volatility of the Indian Rupee against the US Dollar as a liquidity issue rather than a solvency crisis. In an interview, he explained that the current depreciation reflects market panic rather than India's economic fundamentals, as the country's foreign debt-to-GDP ratio remains low. Mishra emphasized the real economic damage caused by volatility, noting that it leads to increased risk premiums demanded by global investors, delays in investment decisions, and adverse impacts on small and medium enterprises. He highlighted the need for India to secure $70-100 billion in capital inflows to restore stability. Mishra proposed measures such as temporary exemptions on withholding tax for bond investors and crowd control measures to manage market panic. He reassured that India's substantial foreign reserves provide a solid foundation for intervention, aiming to stabilize the rupee and improve economic perceptions.