RBI Governor Das Says Indian Economy Remains Strong To Manage Effects Of Global Events

The governor said that India’s external sector remains strong and the current account deficit has also stayed within manageable levels and touched 1.1 per cent

Das pointed out that the RBI is going to bring major changes in credit delivery specifically due to small entrepreneurs and farmers.

Source : PTI

Reserve Bank of India’s Governor, Shaktikanta Das, on Saturday said that the Indian economy is in a good position to manage any sort of impacts from global events. The official said that the domestic economy and financial sector are well placed to handle any spillovers from external factors.

Das noted that India’s external sector remains strong and the current account deficit has also stayed within manageable levels and touched 1.1 per cent, reported PTI. Addressing a programme as part of the launch of the Kochi International Foundation, the governor said, “Today, the growth of the Indian economy presents a picture of stability and strength. Earlier, in 2010 and 2011 it was in the range of six to seven per cent.”

The official said that India also has one of the largest forex reserves globally at nearly $675 billion. In terms of inflation, he noted that it is anticipated to remain moderate despite periodic obstacles.

Comparing inflation to an elephant in the room, Das said, “India's inflation rose to 6.2 per cent in October from 5.5 per cent in September because of food inflation. Now the elephant has gone out of the room for a walk, then it will go back to the forest.When the Ukraine war started, inflation went up, then we immediately avoided negative interest rates. What we did not do in India is also important. We, RBI, did not print notes because if we start printing notes the problems we are trying to resolve will expand and go beyond handling. In many countries the inflation was deep-rooted but ours is moderating. We kept our interest rate 4 per cent, therefore making our recovery much easier.”

The governor noted that India needs structural reforms in service sectors. Das pointed out that the RBI is going to bring major changes in credit delivery specifically due to small entrepreneurs and farmers.