Recently, reports from many international rating agencies and brokerage firms have revealed positive projections about India’s economic situation. Similar positive assessments also come from the Reserve Bank of India (RBI), which states that India’s economic situation will remain stable and strong. Reports also indicate that India’s economic growth will develop in a balanced manner and despite global fluctuations, there will be no negative impact on the country’s economy.
India’s foreign sector is strong
India’s economy and financial sector are fully prepared to handle any possible negative impact arising from global events, RBI Governor Shaktikanta Das said at the inaugural event of the Kochi International Foundation on November 16. He also said that India’s external sector is in a strong position.
India’s current account deficit
Shaktikanta Das said on the occasion, “Our current account deficit (CAD) is in the manageable range of 1.1 per cent, while in 2010-11 it was between six and seven per cent.” This means that India’s current account deficit is now very much under control, indicating economic stability.
Strong position in foreign exchange reserves
The Governor further said that India has foreign exchange reserves of around $675 billion, the largest in the world. This ensures that India has adequate reserves available to meet external shocks.
inflation situation
Talking about inflation, Shaktikanta Das said that there may be fluctuations in inflation from time to time, but it is expected to remain at a moderate level. However, it also noted that India’s inflation rate rose to 6.2 percent in October from 5.5 percent in September due to food inflation.
