Rupee fall no macro worry, was long overdue: Panagariya
Team Udayavani, Aug 27, 2018, 3:35 PM IST
New Delhi: Former Niti Aayog vice-chairman Arvind Panagariya has opined that rupee depreciation was long overdue, saying appreciated currency had hurt the country’s exports.
Panagariya further said India’s macroeconomic management is sound and there was no reason to worry.
“The main news recently in the macro story is depreciation of the rupee. But this had been long overdue.
“The real exchange rate has seen large appreciation in recent years and this has hurt our exports,” he told PTI in an interview.
The rupee on August 16 slumped to a life-time low of 70.32 to the U.S. dollar on strong demand for the greenback.
The rupee on Friday staged a good recovery to end higher by 20 paise at 69.91 against the U.S. currency.
Panagariya who is currently a professor of economics at Columbia University further said, “I am personally very pleased the RBI has used our foreign exchange reserves prudently in managing the exchange rate.”
Replying to a question, the former Niti Aayog vice-chairman said that he expects India’s growth rate to cross the 8% mark by the third or fourth quarter of fiscal 2018-19.
“I am confident that in less than ten years we will cross the U.K., Germany and Japan to become the third largest economy in the world,” he predicted.
On the possibilities of populist measures being announced by the Modi government ahead of 2019 general elections, Panagariya said that the risk is omnipresent “but I do not see this happening.”
The government, he said, has more or less announced its revenue and expenditure trajectories.
“I also firmly believe that Prime Minister Modi worked hard to place the nation’s finances on a firm footing and he will not risk the nation’s future to gain a small political advantage on the margin,” Panagariya insisted.
He also pointed out that FDI in India in 2017-18 has been slightly higher than in 2016-17 and 70% higher than in 2013-14.
Stating that inflation in July at 4.2 per cent was lower than 4.9% in June, Panagariya said, “In my view, inflation in the neighbourhood of 5% for a rapidly growing developing country is about right since it allows relative prices to adjust and provide the necessary signals to investors.”
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
‘Markets may extend rally this month on strong domestic eco, current govt’s potential re-election’
India Ranks Among Top 5 Developing Countries in Aviation Emissions: Study
Section of Air India Express staff flag concerns, allege mismanagement at airline
ATF price hiked marginally, commercial LPG rate reduced by Rs 19 per cylinder
Godrej family split: Adi, brother to keep listed firms; cousin Jamshyd to get unlisted companies & land bank
MUST WATCH
Latest Additions
BJP can’t remain with those who commit atrocities against women: Amit Shah on Prajwal Revanna
Nothing will be left for future if held private properties material resources of community: SC
Amit Shah holds road show in Haveri ahead of Karnataka’s 2nd phase Lok Sabha polls
‘Markets may extend rally this month on strong domestic eco, current govt’s potential re-election’
Hoax bomb threat: Delhi government issues advisory for schools