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

Like UP, bring BJP to power in Jharkhand to ‘bulldoze’ mafia: Yogi at Koderma poll rally

Govt asks Wikipedia why it should not be treated as publisher instead of intermediary

SC upholds validity of UP madrassa law, says it does not violate principle of secularism

Bantwal: Theft at Shree Mahalingeshwar temple

States not empowered to take over all private properties for distribution to serve common good: SC

Chhattisgarh NAN ‘scam’: FIR against 2 retired IAS officers, former AG

Davangere: MLA Basavantappa returns Rs 1.2 lakh left behind at shop

Related Articles More

Markets fall in early trade amid unabated foreign fund outflows

New software for fast-tracking project approvals: Karnataka Minister Patil

In-flight passengers can access WiFi services only when allowed, say new rules

SEBI mulls separation of non-regulated activities; ‘cross-default’ definition for debenture trustees

Sensex plunges 942 points to settle at nearly 3-month low; RIL, HDFC Bank biggest drag

MUST WATCH

Gho Pooja in Deepavali Festival

Melukote Deepavali

Ganapathi Co-operative Society Ltd

Udayavani Chinnara Banna 2024

Annapoorna Aahar | Food Places In Mysore


Latest Additions

Like UP, bring BJP to power in Jharkhand to ‘bulldoze’ mafia: Yogi at Koderma poll rally

Govt asks Wikipedia why it should not be treated as publisher instead of intermediary

MUDA Case: K’taka HC adjourns hearing to November 26

SC upholds validity of UP madrassa law, says it does not violate principle of secularism

Union Minister H D Kumaraswamy booked for threatening police officer

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.