India is sitting on huge foreign exchange reserves which can be used when the country needs it, he says
India is sitting on huge foreign exchange reserves which can be used when the country needs it, he says
Prime Minister’s Economic Advisory Council member Sanjeev Sanyal on Saturday said the country’s internal market is in good shape and its macroeconomic stability is in a comfortable zone despite the pandemic’s havoc.
Speaking at the Bharat Chamber of Commerce in Kolkata, Mr. Sanyal said that during the two-year pandemic there has been an unprecedented crisis and the Indian economy has strengthened after that.
“The world has never been in equilibrium”, he said, adding that the dynamics keep changing.
Mr. Sanyal said, “The policies adopted during the last two years have strengthened the Indian economy. The internal market is in good shape, the banking system is much better now than in the earlier crisis. Macroeconomic stability is in a comfortable position. . region”.
The Economist said the supply side, which was in complete disarray, has now improved and the benefits of resource availability after the implementation of GST are now accruing.
According to him, India has huge reserves of foreign exchange which can be used when the country needs it.
“We need to deal with an uncertain future. The uncertainty is so high that it becomes difficult to formulate policies at times”.
“Earlier it was a Newtonian (mechanical) world…equilibrium was a word that had nothing to do with any economic connotation”, Mr. Sanyal said.
He said that India has moved towards a market-based economy in 1991 with aspirations of achieving some optimum balance. “But there is no such equilibrium in the economies”.
Asked about the country’s needs in the next 25 years, Mr. Sanyal said that enforcement of the contract to deliver justice would be the first priority and no legal gimmicks should be allowed to interfere.
He also said that there is a need for reforms in the administration.