Kochi, November 17 (IANS). Reserve Bank of India (RBI) Governor Shaktikanta Das said that the Indian economy is strong enough to deal with any impact globally.
“Today the growth of the Indian economy is presenting a picture of stability and strength,” Shaktikanta Das said while addressing an event organized to mark the launch of the Kochi International Foundation.
He said the country’s external sector is also strong and the current account deficit (CAD) remains within manageable limits, currently at 1.1 per cent of GDP. Earlier, in 2010 and 2011 it was between six to seven percent.
RBI Governor Shaktikanta Das also said, “India has $675 billion in foreign exchange reserves. Despite fluctuations in inflation in the country, its rate is expected to remain moderate.”
Comparing inflation to an elephant, he said India’s food inflation rose from 5.5 per cent in September to 6.2 per cent in October. Now that the elephant has gone out of the room for a walk, he will then go back into the forest.
He also said that when the Ukraine war started, inflation increased, but the RBI, unlike some other countries, followed the right monetary policy and proved successful in keeping prices under control.
He further said, “What we did not do in India is also important. The RBI did not print notes, because if we start printing notes, the problems we are trying to solve will expand And it will be impossible to control them. Inflation is deeply rooted in many countries, but in ours it is coming down.”
Shaktikanta Das said that we have kept our interest rate at 4 percent, so recovery has become very easy.
–IANS
FM/CBT
