RBI : Economy can withstand China Ripple Effects
August 26, 2015: RBI Deputy Governor S S Mundra said in the national banks meet that problems are only short term as the world economies are interconnected, and India is capable of getting through any external shock. He reminded that we are going forward with pricing of commodities currently are as compared to what it was two years ago. He believed that we are on the right track as far as long term situation is concerned.
He said that we are an interconnected market, and there would be the situation when these kind of events arises in the market.Solution to these events is the right combination of our medium and long term policies.
RBI Governer Raghuram Rajan was also in the same event and expressed that India's macroeconomic fundamentals are very strong and have enough forex reserves that would prove sufficient to cope up with the market changes.
He said that India's reserves on the last count came out be $355 billion plus $25 billion which is due to the forward sales.