In order to represent economic fundamentals and restrict foreign exchange interference, the US asked India to allow the exchange rate to shift. The US Treasury Department added India in currency manipulators monitoring list, while Switzerland and Vietnam were listed as currency manipulators. Four big US trade partners — Vietnam, Switzerland, India and Singapore — have intervened in the foreign exchange market on a sustained basis over the four quarters to June 2020.
In its report on trading partners, the US Treasury reported that India fulfilled two of the three conditions in this report, with a significant current account surplus and consistent, one-sided interference during the monitoring period. The Treasury will carefully track and evaluate each of these economies' economic patterns and foreign exchange policies.
US treasury state about India, "The authorities should allow the exchange rate to move to reflect economic fundamentals and limit foreign exchange intervention to circumstances of disorderly market conditions. India can also leverage the recovery period to pursue structural reforms that will open its market further to foreign investment and trade, including foreign portfolio investment in Indian sovereign and sub-sovereign bonds, thereby fostering stronger long-term growth."
"India has been exemplary in publishing its foreign exchange market intervention, publishing monthly spot purchases and sales and net forward activity with a two-month lag. The RBI states that the value of the rupee is broadly market-determined, with intervention used only to curb undue volatility in the exchange rate".