Chennai, May 23 (ANI): RBI Governor Raghuram Rajan has said that India has built up layers of defences against volatile capital flows in financial markets by building up its foreign exchange reserves, improving its economy, and focusing on economic growth.
But India is now widely seen as less vulnerable to outflows as the RBI has steadily built up its currency reserves, which hit a record high of $353.88 billion as of May 15.
The economy is also starting to show signs of improvement, with some analysts expecting growth to surpass that of China are this year. India is due to report gross domestic product growth data next week.
At the same time, government measures to curb gold imports and slumping oil prices have sharply narrowed the country’s current account deficit, with analysts expecting a surplus in the January-March quarter. Rajan added according to numbers of Central Statistical Office, India is the fastest growing large economy in the world.
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