“Today, the growth of the Indian economy presents a picture of stability and strength,” Das said while addressing an event at the launch of the Kochi International Foundation here.
The country’s external sector is also strong and the current account deficit (CAD) has remained within manageable limits as it presently stands at 1.1 per cent of GDP. Earlier, in 2010 and 2011, it was in the range of six to seven per cent, he added.
The central bank chief also pointed out that India has one of the largest foreign exchange reserves in the world at about $675 billion. He further stated that the country’s inflation was 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 said.
Referring to inflation as an elephant in the room, Das remarked: “Now the elephant has gone out of the room for a walk, then it will go back to the forest.”
He also pointed out that when the Ukraine war started, inflation went up but the RBI followed the right monetary policy, unlike some other countries, and succeeded in keeping the price spiral in check.
“What we did not do in India is also important. 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.
Das also highlighted how the RBI is bringing about a transformational change in credit delivery, especially to small entrepreneurs and farmers, through the Unified Payments Interface (UPI) and the Unified Lending Interface (ULI) launched recently.
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