India's rupee depreciation, despite strong fundamentals, is attributed to a global "AI investment supercycle" diverting capital to dollar assets. The author champions India's frugal AI and digital infrastructure strategy as potentially superior. Concerns about AI impacting IT services or manufacturing are refuted by India's evolved service models and new export niches. Robust FDI and improved trade competitiveness (REER) underscore long-term investor confidence. The article concludes this distorted exchange rate is temporary, awaiting the AI cycle's shift, affirming India's economic strength.