Mumbai: Despite the growing protectionism worldwide, according to the Governor of the Reserve Bank of India Sanjay Malhotra, India is committed to the market reforms. Speaking at an event organized by the Indian industry and the US India Strategic Participation Forum on Friday, Malhotra pointed out the new liberalization measures in defense, insurance, petroleum, telecom and space.
Saying that the market-oriented policies were a consistent subject in gradual Indian governments, while Malhotra said, “While the speed and specific attention of reforms may vary from time to time, the commitment to more market-oriented economic structure has not changed.” The governor said that almost all areas have been opened up to 100% foreign direct investment in a phased manner. “About 90% of FDI is now below the automatic route,” he said.
Malhotra portrayed a rapid picture of India’s possibilities. He said, “India is ready to be a dynamic powerhouse of opportunities, innovation and permanent development in the coming years,” he said. He credited monetary policy to help control inflation. He said, “In view of benign inflation approaches and moderate development, the monetary policy has been adjusted,” he said, keeping in mind the 50 base point deficiency in policy rates this year.
The Indian economy, he said, with an average increase of 8.2% in the last four years, performed “remarkable flexibility and dynamics”, compared to 6.6% in the last decade. Despite the global financial instability, development is expected to increase by 6.5% this year. In the last decade, India has climbed the fifth-largest economy from the world’s tenth-largest economy, and the purchasing power is third by equality. “Even nominal, we are ready to become the third largest economy soon,” said Malhotra.He reiterated India’s target of becoming a developed economy by 2047.
On the outer balance, he said that India’s current account deficit remains manageable at 1.3% of GDP and the rupee has performed better than many emerging market currencies. India’s foreign exchange reserves, he said, till 18 April was $ 686.1 billion.
