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Rupee Dip Risks Economic Nosedive in India, Billionaire Says

India needs to immediately use its foreign exchange reserves to arrest the rupee’s record plunge as the weakening currency has the potential to send the economy into a “nosedive,” billionaire Adi Godrej said.

“The whole economy will suffer dramatically -- there will be huge inflation, which will lead to high interest costs and a whole vicious cycle will be created,” Godrej, chairman of the soaps-to-real estate Godrej group, said in a phone interview yesterday. “I’m very surprised that the government and the Reserve Bank of India are not intervening sufficiently to prevent the volatility.”