Reserve Bank Governor Raghuram Rajan on Wednesday sought to ease fears amid the stock market plunge and therupee nearing its lowest-ever level, saying things will stabilise and people will look at stable emerging markets, including India.
The rupee, Rajan said, has been “relatively strong” in the emerging-market currency basket, but India is affected by the “same kind of jitters” hitting other world markets.
“My sense is that, at this point, if you are an emerging market, you focus on fundamentals, try and get inflation down, try and get your current account deficit down, keep your fiscal on target, do all the good things, and then people reward you,” he said in Davos.
Investors “take the money off the table in a hurry when they are doing it everywhere, but then they come back”.
“My sense is that after the initial volatility, things will stabilise, people will try and look for the good, stable emerging markets. India is one of them. Our growth is pretty good, all the other indicators seem to be going well,” he told CNBC. Read Articles