2024-11-16 17:41:00
“Today, the growth of the Indian economy presents a picture of stability and strength,” he said, while addressing a programme as part of the launch of the Kochi International Foundation here.
Earlier, in 2010 and 2011 it was in the range of six to seven per cent, he pointed out.
Das also cited that India has one of the largest foreign exchange reserves in the world at about USD 675 billion.
On inflation, the RBI Governor said, “it is expected to be moderate despite periodic humps,”
India’s inflation rose to 6.2 per cent in October from 5.5 per cent in September because of food inflation. He compared inflation to an elephant in the room. “Now the elephant has gone out of the room for a walk, then it will go back to the forest,” he added. “When the Ukraine war started, inflation went up, then we immediately avoided negative interest rates,” he said.
“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,” he added.
“We kept our interest rate 4 per cent, therefore making our recovery much easier,” he pointed out.
Citing that the country requires structural reforms in service sector and others, Das said that like the Unified Payments Interface (UPI) and the Unified Lending Interface (ULI), the RBI is going to bring transformational change in credit delivery especially to small entreprenuers and farmers.
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How does the strength of India’s external sector impact its attractiveness for foreign investment, according to Governor Das?
**Interview with Reserve Bank of India Governor Shaktikanta Das**
**Interviewer:** Thank you for joining us today, Governor Das. You recently mentioned that the Indian economy is well-positioned to handle global uncertainties. Can you elaborate on what factors contribute to this stability?
**Shaktikanta Das:** Thank you for having me. The resilience of the Indian economy can be attributed to several key factors. Firstly, our current account deficit is at a manageable level of 1.1 percent, which indicates that we are not overly dependent on external financing. Additionally, our foreign exchange reserves are among the largest in the world, providing a significant buffer against global volatility.
**Interviewer:** You highlighted the strength of the external sector. How do you see this playing a role in India’s economic growth moving forward?
**Shaktikanta Das:** A strong external sector is crucial for maintaining investor confidence and facilitating trade. It not only supports our domestic economy but also positions India as an attractive destination for foreign investment. As we continue to strengthen our trade relationships and expand our export capabilities, I believe we will see sustained economic growth.
**Interviewer:** In your address, you mentioned that the current economic situation in India is quite stable compared to previous years. How does this compare to the highs and lows experienced in 2010 and 2011?
**Shaktikanta Das:** Indeed, back in 2010 and 2011, we saw growth rates in the range of six to seven percent, but they came with significant challenges. Today, while we are still facing global pressures, our growth trajectory is more stable. This is due to prudent policy measures and a focus on structural reforms, which have helped to create a more resilient economy.
**Interviewer:** Lastly, what do you envision for India’s economic future amid ongoing global challenges?
**Shaktikanta Das:** I am optimistic. We have laid a strong foundation, and with continued efforts in reform and innovation, I believe India can navigate through global uncertainties while continuing to grow. Our focus will remain on fostering a conducive environment for businesses and ensuring that we remain a key player on the global economic stage.
**Interviewer:** Thank you, Governor Das, for sharing your insights with us today.
**Shaktikanta Das:** Thank you for having me.
