Renowned economist and former Reserve Bank of India (RBI) governor Raghuram Rajan said that India has enough foreign exchange reserves and assured that the country would not plunge into an economic crisis like its neighbours, Sri Lanka and Pakistan.
“We have sufficient foreign exchange reserves. RBI has done a good job in increasing the reserves. We are not having problems like Sri Lanka and Pakistan. Our foreign debts are also less,” he told ANI.
RBI’s latest data puts India's foreign exchange reserves at $571.56 billion for the week that ended on 22 July.
Rajan said that there is inflation worldwide, mostly in food and fuel prices. “At present, there is inflation all over the world. RBI is increasing interest rates which will help in reducing inflation. Most inflation is in food and fuel. As we can see, food inflation is coming down in the world and will decrease in India also,” he said.
Sri Lanka recorded 60.8 percent inflation in July, up from 54.6 percent in the previous month, the country’s statistics department said in a statement on Friday. There is a shortage of essentials as it faces its worst economic crisis since independence. Amid mass unrest, Gotabaya Rajapaksa was forced to flee the country and resign as the president.
Pakistan’s political instability is adding to its economic woes, caused by excessive external debt, depletion of foreign reserves and rising inflation. The country’s central bank said on Thursday that its official liquid foreign exchange reserves have fallen by $754 million to $8.57 billion, as reported by Reuters.
(This report contains inputs from Reuters and ANI.)