India shows remarkable resilience amid global challenges — Industry

NEW DELHI — India has shown remarkable resilience amid global challenges by continuously moving on a high growth trajectory on the back of prudent policy measures and vigilant monetary policy stance, industry experts said on Saturday.

The foreign exchange reserves surged by $5.16 billion to reach a lifetime high of $657.16 billion during the week ended July 5, according to the latest RBI data.

 “This would accelerate India’s economic growth to new highs, bolstering its global stature. This increase in Forex reserves will boost India’s worldwide attractiveness, supporting domestic trade and industry,” said Shri Sanjeev Agrawal, President, PHD Chamber of Commerce and Industry (PHDCCI).

India’s significant foreign exchange reserves would give the Central bank greater flexibility in managing the country’s currency and monetary policy in light of geopolitical conditions and global macroeconomic headwinds, said experts.

Amit Goel, Co-founder and Chief Global Strategist, Pace 360, said the Central bank has been using its reserves to check volatility in the currency.

 “The rupee is among the best-performing Asian currencies so far this year. The monetary authority will continue to build reserves ‘opportunistically’ as they help prevent volatility in the market,” said Goel.

A strong forex kitty enables the RBI to intervene in the spot and forward currency markets by releasing more dollars to prevent the rupee from going into a free fall.

RBI Governor Shaktikanta Das had recently said that India’s external sector remains resilient and overall, the Central bank remains confident of meeting the country’s external financing requirements comfortably.