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  1. We are on verge of revolution, says RBI Guv Raghuram Rajan

We are on verge of revolution, says RBI Guv Raghuram Rajan

Seeking to guard investor returns from excessive exchange rate movements, RBI Governor Raghuram Rajan today said a move towards an inflation target of 4 per cent will help contain the currency market volatility.

By: | Mumbai | Updated: April 7, 2016 2:06 PM
Raghuram Rajan, rbi

On supply side issues, RBI Guv Raghuram Rajan said the government’s emphasis was on infrastructure creation and improving logistics network, “some of which is improving due to private sector companies like Flipkart and Snapdeal creating huge change in logistics”. (Express Photo)

Seeking to guard investor returns from excessive exchange rate movements, RBI Governor Raghuram Rajan today said a move towards an inflation target of 4 per cent will help contain the currency market volatility.

“Our aim in the macro stabilisation is to make the exchange rate less and less an issue that investors have to worry about,” Rajan said.

Stating that the central bank has intervened in the past to minimise volatility, Rajan said, “If we move towards our inflation target of around 4 per cent, then the years of the past where you had extreme volatility in rupee because rupee inflation in India was much higher than the world, will become a thing of the past.”

Speaking here at an industry event, Rajan also stressed on the need to make the country’s banking system more vibrant and said steps are being taken in this regard.

On overall economy, Rajan said India has almost everything for taking a big leap in production on manufacturing as well as services side.

“We have to take advantages of global linkages. We are on the verge of a revolution here. I do believe that we should allow our enterprises to find their way,” Rajan said, while pitching for creating “a business environment which will allow them to go where they desire to go”.

Speaking about the currency market volatility, Rajan said a long-term view would show that “depreciation in the rupee essentially matches inflation differentials and therefore anybody who invests at rupee rates gets appropriate returns to match the kind of depreciation risk that they have taken”.

“Put differently, if foreign investors want to lend to India in a long run for infra projects, the value of the rupee at the end of the project is probably a second order concern, should be a second order concern,” he added.

On supply side issues, Rajan said the government’s emphasis was on infrastructure creation and improving logistics network, “some of which is improving due to private sector companies like Flipkart and Snapdeal creating huge change in logistics”.

On power sector, he said: “Now for the first time we are close to self sufficient. Of course, if the distribution companies restructuring is done, perhaps full demand can be expressed but we are close.

“Given that today we are using about 60-65 per cent of the available capacity there is still room for more power production,” he added.

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  1. Danendra Jain
    Apr 10, 2016 at 5:09 am
    Now even RBI Governor has praised performance of Mr. Narendra Modi , Prime Minister of India and BJP led government. I hope Modi haters will now tag even Rajan with Modi Bhakt. Modi haters do not have anything to genuinely criticize and hence they tag veryone with word 'Modi Bhakt' whoever hails Modi or priases any action taken by Modi government. Some of Modi haters, specially media men were making a false propaa that Jaitley and Modi are not happy with Rajan, some of them spread a news that Rajan may be removed and some of them spread rumours that Jaitley will be replaced by Parekar. All of them hav been provd wrong .All these rumour mongers and Modi haters will now understand that all the three Modi,Jaitley and Rajan are on same platform, on how to grow, on how to clean system and how to improve system and procedures. There may be different opinion on any issue but there is no difference of mind and heart.I hope people will always try to make them aware of reality and beware of such rumour mongers and blind Modi -haters who are bent upon putting hurdles in growth of the country and who are bent upon maligning image of Modi and bent upon tarnishing image of the country.Opponents of Mr. Modi are now allowing discussion on any important bill and wasting time of Parliament only on non-issues. Such opponents are real enemy of growth and development.I take this opportunity to condemn even editorial group of Times of India and economic times which more often than ridicule and blindly criticize Modi. I condemn promoters of NDTV, ABP news, News24 like TV channels too who are spoiling Indian environment for the sake of their ego and for their TRP. They are more busy in carrying out debates on Kanhaiya and Rohit Vermula . They do not have time to give time for debates on issues related to growth and development. Country will grow fastly under leadership of Modi if media men stop their mis-information campaign against Modi. Journalism is good only if it is unbiased and positive. Unfortunately in our country journalists give more weightage and coverage to persons like Kanhaiya, umar Khalid, Rohit Vermula, Digvijay Singh, Sakchi maharaj , Owessi. Kejriwal and not good persons like Narendra Modi, Parikar, Piyush Goyal, Suresh Prabhu who are performing excellently well. In democracy , eevery elected representative is given period of five years to prove his ability and to work for the pleasure of common men. Kejriwal is given time for serving Delhi people , Mamta for West bengal, Raman For Chhatishgarh and so on. Let them work and finally it wil be voters of that area who will decide their fate. Similarly Mr. Modi has ben elected for entire India, if all opponents support him in performing good work, I think India will become number one in the world very soon. Let us learn to work together , learn to respect each other and give them an opportunity to perform.
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