unwinding of stimulus in the wake of the global financial crisis, policy reviews stalling projects, and a spike-up in Indian demand for gold.
"There's a lot that is going on to fix these medium-term problems," he said.
"If you are an outsider looking at India, learn to filter out both the irrational exuberance and the excessive pessimism. We're subject to both. You will become manic-depressive if you follow our moods."
He added that the question of using interest rates to address inflation was more complicated in India than in the United States.
"In the U.S. you know there is a large interest rate-sensitive sector that is going to be affected when you raise interest rates ... But what if you have a large part of the country that is not connected directly to the financial system?" he said, referring to India's massive rural population.