Global Situation Grim But Indian Economy In Better Shape

Global situation grim but Indian economy in better shape, zero tolerance for major rupee depreciation:  RBI Governor Shaktikanta Das.

RBI Governor Shaktikanta Das has said that India’s economy is in a better position than other economies of the world.

The global situation remains grim due to the Russo-Ukraine war and the Corona pandemic, but the negative impact of these adverse conditions on the Indian economy has been minimal.

Das said at the annual conference of the Bank of Baroda that the global monetary policy tightening, commodity prices, and geopolitical risks have led to volatility in currency prices across the world.

But the Indian rupee is still in a better position than many developed economies.

Das said the Indian rupee is holding well against advanced and emerging markets. RBI is supplying US Dollars to ensure an adequate supply of liquidity in the market.

He said that hedged forex exposure needs to be looked at factually and not to be concerned about. Das said that we have zero tolerance for any huge fluctuations in the rupee.

The RBI has helped to maintain the smooth availability of the rupee. He also said that the Reserve Bank of India has not fixed any specific level of rupee.

Keeping in view the value of the rupee, RBI is supplying dollars in the market where it feels a shortfall.

Global situation grim but Indian economy in better shape: Trying to keep inflation at 4 percent.

RBI Governor Shaktikanta Das said that our target is to keep inflation around 4 percent over time. He said that our approach is to completely tackle the problem of inflation.

We aim to do a soft-landing for the economy.

Shaktikanta Das said that we will review the 6.7 inflation estimate for the financial year 2023 during the upcoming MPC meeting. Our research team is working on it.