On her official visit to the USA, while addressing a press conference, explained the growth of India’s robust economy and she laid stress on the efforts made by the RBI to contain the free fall of the rupee.
According to the data provided by the World Bank, India is the world’s sixth largest economy, India’s banking and money market regulator, RBI, has taken a variety of strategic steps to stimulate India’s business environment, including reforms to remove the loopholes in the business sector, reducing minimum capital requirements and simplifying the process of necessary licenses. This makes India one of the top countries in terms of GDP
When a reporter asked Nirmala Sitharaman about the challenges that the rupee could face in the day ahead and what measures are being taken to control the same, she said that the RBI has taken measures in order to maintain a level of volatility in the market and not to intervene and fix the value of the rupee in the market. The rupee fell by 8 paise to close at 82.32 against the US dollar on Friday amid a firm greenback overseas and sliding crude oil prices. On Thursday, the local currency settled at 82.24 against the US dollar. She further explained that the Indian currency is still performing better than the other emerging market currencies with the constant appreciation of the dollar.
India has even developed good foreign reserves and is having a considerably manageable level of inflation despite the festive season onboard. The macroeconomic fundamentals are also at an appreciable level. Despite the external disturbances in the world this exhibits a good picture of the developing nation.
Considering the situation when countries like Turkey are facing double digit inflation, we are also being affected by external factors but because of timely implementation of relevant economic measures we are in a much better position.
According to the global economic experts the latest depreciation is a result of geopolitical tensions across the globe triggered by the Russia-Ukraine war. The prices of several commodities shooted up and caused a record surge in the inflation as there occurred a flow of capital back to the US from different markets of the world consequently leading to devaluation of many currencies.
India is a land of a billion people with dreams and with the expanding global market and the digital economy with the opening of digital banking units for all individuals today we are moving towards the endeavour of achieving an enormous GDP growth and considerable levels of inflation which will display the nature of a developing economy. The rupee will automatically outshine in the international markets thereafter.
