India is in better position compared to other markets: Raghuram Rajan

Speaking at FIBAC 2015, held by Federation of Indian Chambers of Commerce and Industry (FICCI) and Indian Banks' Association (IBA) in Mumbai, he also stated that there needs to be strengthening of the domestic market, and one way to do it is by way of increasing production, conforming to 'Make in India' vision of PM Narendra Modi.

Debunking speculations about the weakness in Indian markets, Reserve Bank of India (RBI) Governor Raghuram Rajan has said that India is in a better position compared to other markets, but the economic growth is still below the level India is capable of.

Speaking at FIBAC 2015, held by Federation of Indian Chambers of Commerce and Industry (FICCI) and Indian Banks' Association (IBA) in Mumbai, he also stated that there needs to be strengthening of the domestic market, and one way to do it is by way of increasing production, conforming to 'Make in India' vision of PM Narendra Modi.

Rajan said that there is $380 billion in reserves to be used when needed. Therefore, there would be no hesitation to use it when required to reduce the volatility in rupee. Once the volitality reduces, he expressed confidence that India will re-emerge as a destination of choice for investments.

Talking about the inflation, he said that expectations among public still remain high. He highlighted that high stressed assets have been dampening banks' ability to cut base rates. Therefore, the short term priorities of RBI is to two fold. First is to help growth by bringing down the inflation, as much of the industry desires. The second objective is to work with the government and the banks to speed up the clearing of bank balance sheets, so that they are capable of lending to the major projects.