India is poised
to maintain the present growth momentum with stability, Reserve Bank of India
governor Yaga Venugopal Reddy said in a speech in London.
"In the current
debate on macro-imbalances of global economy, India does not figure at all as
a contributing source, since our saving-investment as well as domestic-external
demand balance in the economy are by and large appropriate," he told a gathering
at the London School of Economics.
policies increasingly recognise global developments, but their adaption to such
developments, in the Indian context, is tailored to the prevailing status of institutions
and markets, immediate relevance and the evolving needs of the country. As an
example, the function of financial supervision continues with RBI, but in 1994,
this function attained a semi-independent status through the establishment of
an overseeing authority in the Board for Financial Supervision - but within RBI,"
he said in a speech posted on the RBI website.
whether the RBI was reasonably confident that it could meet challenges and maintain
present growth momentum with stability, he said: "There are grounds for optimism
and these include democratic values, financial system stability, skilled manpower,
technological capabilities, demographic dividends, large and growing entrepreneurial
class, and penchant for innovation."
single most critical determining factor for the future would, by all accounts,
be the improvements in governance that impacts personal security, property rights,
business environment, and above all, a sense of fairness in the conduct of public
has grown at an average rate of 8.6 per cent in the past four years and is expected
to expand at 8.5 per cent in 2007-08, he added.