Economy News

Growth, financial stability, forex: What Das said

NBFCs and other financial entities must continue to give the highest priority to quality of governance and adherence to regulatory guidelines

On growth

“Our potential growth appears to have gone up. In fact, going by the NSO’s forecast of 7.6% growth in FY24, the average for the three years, FY22, FY23 and FY24, will work out to be 8%. So, when your average growth for a three-year period is 8%, naturally the potential growth appears to have gone up. After the final GDP number for FY24 is released at the end of May, we will again undertake a study to assess the potential growth and the real rate.”

On financial stability

“NBFCs and other financial entities must continue to give the highest priority to quality of governance and adherence to regulatory guidelines. Financial sector players, by and large, operate with public money. They should always be mindful of this. The RBI will continue to engage with financial entities. Financial stability is a joint responsibility.”

On forex reserves

“India’s foreign exchange reserves reached an all-time high of $645.6 billion as of March 29. Following the Ukraine-Russia war and the outflow of dollars from India as well as several other countries… at one point it had gone down to $524 billion. We had said the decline was partly due to the change in valuations of our assets and partly due to our intervention in the market to ensure orderly depreciation. We stated we are using our forex reserves in a judicious manner. It was a strong umbrella we had built up and were using because it was raining heavily.”

Source:indianexpress.com

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