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Washington: India is not facing any economic crisis and wont approach IMF for funds in the next five years as the country has enough forex reserves, Reserve Bank Governor Raghuram Rajan said.
Theres no way we are close to being a country in financial or economic crisis Theres not a chance we will go to the IMF for money in the next five years, he said at CNNs Debate on the Global Economy.
The Reserve Bank has taken a series of measures to strengthen rupee and promote growth.
Allaying fears of India not being able to meet its financial obligations, Rajan said, Indias external debt to GDP is 22 percent. Twenty-two percent of GDP is external debt and Indias has reserve of $280 billion which is 15 percent of GDP.
In other words, the country can pay three-fourth of its debt from its forex reserves, he said.
Out of total short-term external debt that we have to pay for is 10 per cent of GDP. So, we have enough reserve to take care of that, he said speaking on the sidelines of the funds meeting in Washington.
He said, We bought over $60 billion dollar gold last year. $60 billion accounts for three-fourth of our current account deficit. If the push comes to shove, we can pay the world in gold.
The RBI governor said while Indias economy has slowed, the countrys forex reserves are large enough.
We need to bring back growth now. But were still doing better than a significant number of economies in the world, Rajan said.
PTI
India won’t seek IMF funds in five years: Rajan | Firstpost
Theres no way we are close to being a country in financial or economic crisis Theres not a chance we will go to the IMF for money in the next five years, he said at CNNs Debate on the Global Economy.
The Reserve Bank has taken a series of measures to strengthen rupee and promote growth.
Allaying fears of India not being able to meet its financial obligations, Rajan said, Indias external debt to GDP is 22 percent. Twenty-two percent of GDP is external debt and Indias has reserve of $280 billion which is 15 percent of GDP.
In other words, the country can pay three-fourth of its debt from its forex reserves, he said.
Out of total short-term external debt that we have to pay for is 10 per cent of GDP. So, we have enough reserve to take care of that, he said speaking on the sidelines of the funds meeting in Washington.
He said, We bought over $60 billion dollar gold last year. $60 billion accounts for three-fourth of our current account deficit. If the push comes to shove, we can pay the world in gold.
The RBI governor said while Indias economy has slowed, the countrys forex reserves are large enough.
We need to bring back growth now. But were still doing better than a significant number of economies in the world, Rajan said.
PTI
India won’t seek IMF funds in five years: Rajan | Firstpost
