Mumbai. Reserve Bank of India (RBI) Governor Shaktikanta Das has said that despite global challenges, the Indian economy is growing “smoothly”. Speaking at an event organized by CNBC-TV18 on Thursday, Das, however, refused to comment on Union Commerce Minister Piyush Goyal’s suggestion of cutting interest rates. He said that the Monetary Policy Committee (MPC) will take an appropriate decision in this regard in its next meeting to be held in December.
Gross inflation in October has exceeded the central bank’s target of six percent. Regarding this, Das said that despite fluctuations from time to time, inflation is expected to come down. The Governor said that the country’s economy has performed very well in recent times even in the period of prolonged turmoil and has shown fighting capacity. He said that there are many obstacles in the global economy, such as rising bond yields, fluctuations in commodity prices and increasing geopolitical risks, but despite this, the financial markets have shown strength.
Das said, “The Indian economy is growing smoothly, which is being strengthened by strong macroeconomic infrastructure, stable financial system and strong external sector.” With the rupee falling to a new low, Das said India’s external sector has shown “strength and stability” in recent times, as the current account deficit (CAD) remains at manageable levels. Apart from this, exports of goods have increased while the growth of services exports remains strong.
He emphasized that the country has the fourth largest foreign exchange reserves in the world. As of October 31, the foreign exchange reserves of US $ 682 billion are sufficient to pay the entire foreign debt and import payments for one year. The Governor also clarified that RBI does not set any rate for the rupee and these interventions are to ensure orderly movement and prevent volatility in the currency.