Indian economy in strong position, benefit of high forex reserves and fast growth: Vimal Jalan

Indian economy in strong position

On petrol and diesel prices, former RBI governor said that if the government can cut anything else, then they should do so

Russia Ukraine crisis ,Russia Ukraine CrisisThe Indian economy is in a strong position even under the pressure of rising crude oil prices and is supported by fast growth with high foreign exchange reserves. This is the Reserve Bank (RBI) former governor Vimal Jalan said on Thursday. According to the former governor, the country’s GDP (Gross Domestic Product) growth rate and foreign exchange reserves (Forex Reserve) Due to excess, the Indian economy is in a very strong position. Jalan said that despite the economic uncertainties created around the world by the Russo-Ukraine war, all this will not affect India’s economic performance even though the situation of the war is affecting the global supply chain. Talking to PTI-language, he said that India’s macroeconomic situation is very positive at the moment, as the growth rate is high and the foreign exchange reserves of the country also remain at very high levels.

Concerns about unemployment persist

Amidst better expectations, however, the former governor has expressed concern about the level of unemployment. Apart from this, he has also expressed concern about the rise in prices. On this subject, Jalan said that high inflation is a problem. Seeing the effect of the rise in the prices of petrol and diesel on the inflation rate, he has advocated for some more cuts in the prices. Regarding the high prices of petrol and diesel, Jalan said that the government has already cut taxes on petrol and diesel. At the same time, to keep inflation under control, the former RBI governor said that if the government can cut something else, then it should be done.

Impact of Russia Ukraine crisis on the whole world

He said that the impact of the Russia-Ukraine crisis will be on the whole world. Jalan further said, as far as India is concerned, its relations with Russia are very good, but the export-import is not very much. It is less than two per cent, he said, adding that the situation in Ukraine is a matter of concern, but it will not affect India’s economic performance. While Union Minister Nitin Gadkari has proposed the use of foreign exchange reserves for infrastructure, Jalan said that as far as infrastructure development is concerned, the expenditure on it is in rupees. He suggested, foreign exchange reserves should be used to do something in foreign exchange… If there is a shortage of money, then foreign exchange reserves can also be converted into cash, according to government data, 8.9 percent of the Indian economy in 2021-22 is expected to increase at the rate of. RBI has projected the economic growth rate to be 7.8 percent for 2022-23

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