RBI rules out rupee devaluation

Trivandrum - Delivering the keynote address at the India MSME Summit 2016 organised by the Confederation of Indian Industries (CII) here, he said a section of the industry was demanding devaluation, saying it had boosted growth in countries such as China, Japan and Korea.

 Reserve Bank of India (RBI) Governor Raghuram Rajan on Monday ruled out devaluing the exchange rates to spur economic growth.
Delivering the keynote address at the India MSME Summit 2016 organised by the Confederation of Indian Industries (CII) here, he said a section of the industry was demanding devaluation, saying it had boosted growth in countries such as China, Japan and Korea.
"Considering the state of the economies in these countries, I feel that sustained devaluation is neither feasible nor a good strategy. The exchange rate is not a source of advantage or disadvantage," he said.
Rajan said growth should be driven by competence, competition, ideas and innovation.
Rajan said the micro, small and medium enterprises (MSME) sector had huge opportunity for growth in India. He urged banks not to deny these units access to finance because they don't have good balance sheets.
He said the RBI was considering a loan portal for MSMEs. Under this, the loan application of a unit rejected by one bank could be ported to another bank.
- business@khaleejtimes.com 

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