AUGUST 1, 2022
A day after former Reserve Bank of India (RBI) governor Raghuram Rajan said India is not facing any economic crisis like Sri Lanka and Pakistan, the BJP said on Sunday decisions taken by the Narendra Modi government to handle the economy have turned out to be correct as even its critics acknowledging that.
Rajan has often in the past raised concerns about the government’s economic and social policies.
“The world has acknowledged that the Indian economy is not only on track but is also running at a fast pace. While the world is battling inflation and other headwinds, the Indian economy is strong,” BJP spokesperson Syed Zafar Islam said.
“Those who used to criticize us have changed that into appreciation,” he said.
Addressing an event in Raipur on Saturday, Rajan said India has adequate forex reserves and its foreign debt is also relatively low. India’s future lies in strengthening liberal democracy and its institutions as it is essential for achieving economic growth.
“Besides having adequate forex exchange, India also fares well on various macroeconomic indicators, including balance of payment and current account deficit, the BJP spokesperson said, adding the direction of inflation, including that of food, is also now heading downwards.
Rajan said at present, there is inflation all over the world. The 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,” the former RBI governor said.
According to the latest RBI data, India’s foreign exchange (forex) reserves stood at $571.56 billion for the week ended July 22.
During the week ended July 22, the forex reserves dropped by $1.152 billion.