Former RBI governor Raghuram Rajan Saturday stated that India has sufficient foreign exchange reserves and that the country would not experience economic problems like Sri Lanka and Pakistan.
“We have sufficient foreign exchange reserves. The RBI has done a good job in increasing the reserves. We are not having problems like Sri Lanka and Pakistan. Our foreign debts are also less,” Rajan was quoted as saying by news agency ANI.
The former RBI governor also said there is “inflation all over the world” at present.
“The RBI is increasing the interest rate, which will help in reducing inflation. Most inflation is in food and fuel. As we can see food inflation is coming down in the world and will decrease in India also,” he added.
The inflation in Sri Lanka, which has seen months of mass unrest over the worst economic crisis, surged to 60.8 per cent in July, up from 54.6 per cent in June.
The year-on-year inflation based on the Colombo Consumer Price Index was 60.8 per cent in July, the country’s Department of Census and Statistics said in a statement on Saturday, PTI reported.
Pakistan too is on the brink of economic collapse with the depleting foreign currency reserves and rising inflation. Pakistan, according to the UNDP, is facing a debt in excess of USD 250 billion.