We are in better health than many other countries of the world - FM
"WE are in better health than many other countries of the world. Therefore, there is no reason for excessive or unwarranted pessimism", said the Union Finance Minister P Chidambaram in a Press Conference yesterday.
The FM added,
We believe that the rupee is undervalued and has overshot what is generally believed to be a reasonable and appropriate level. Capital inflows will, in due course, correct the position. On August 12, 2013, I had listed a number of measures that we will take to enhance the capital inflows by about USD 11 billion. Work is in progress on these measures and we are confident that the results will be visible in the near future.
We are exploring structural measures to further reduce the CAD to sustainable levels and, in the meantime, to improve capital inflows.
India's debt indicators are within prudent limits. India does not have excessive public debt (Central and State Governments taken together). The overall public debt to GDP ratio has declined from 73.2 percent in 2006-07 to 66 percent in 2012-13. The economy's external debt is only 21.2 percent of GDP. India's reserves are USD 277 billion.
Stronger growth will, in course of time, alleviate many of the challenges that we face. Therefore, there is no cause for the panic that seems to have gripped the currency markets and that is feeding into other markets. We are confident that stability will return to these markets and we can get on with the task of promoting investment and growth.
China's Forex reserves are USD 3515 Millions.
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