While expressing confidence in the recovery of rupee against dollar very shortly, Mr. Anil Khaitan, President, PHD Chamber of Commerce and Industry said the fall in rupee against dollar is short lived which is primarily driven by rising crude oil prices, apprehensions of deepening trade war between USA and China, FPI outflows and heavy month-end demand for the USD from importers and banks.
The rupee touched 69 against dollar today June 28th 2018.
I believe the Indian economy is resilient enough to withstand the external shocks on the back of strong macroeconomic fundamentals and well supported dynamic policy environment, said Mr. Anil Khaitan.
India’s economic resilience has strengthened during the recent times on account of factors such as improving FDI inflows, forex reserves and several measures undertaken to boost up investment sentiments in the economy, added Mr. Khaitan.
India attracted FDI equity inflows at about USD 43 billion during 2016-17 as against USD 40 billion during 2015-16, posting a robust growth of about 9%.
The Current Account Deficit (CAD) stands at 1.9% of GDP in 2017-18 which is more or less manageable at this juncture.
Forex reserves stands at about USD 410 billion as on June 15, 2018 as against around USD 382 billion as on June 16, 2017 have been improved significantly.
India’s merchandize exports have exhibited growth of about 13% during April- May 2018 and April-May 2017. Going ahead, exports growth is needed to be strengthened with supportive export infrastructure in general and reducing transportation costs in particular to revive the sluggish export growth trajectory, he added.
FII investments represent a gloomy picture. It stands at an average of about Rs 144680 crore in 2017-18 as against Rs 48411 crore in 2016-17 representing a growth of around 199%.
WPI inflation has declined significantly during the last four years from 5.2% in FY2014 to 2.9% in FY2018. In line with the decline in WPI inflation, CPI inflation decelerated from 9.5% in FY2014 to 3.6% in FY2018.
Going ahead, under the patronage of dynamic and fast moving reforms covering all pillars of development, India’s economic resilience will be strengthened to mitigate the impacts of international developments, said Mr. Anil Khaitan.