Foreign reserves adequate to deal with balance of payment problem: Rangarajan
New Delhi: India has enough foreign exchange reserves to deal with any balance of payment problem, C. Rangarajan, the chairman of the Prime Minister's Economic Advisory Council, said Friday.
India's gaping current account deficit, which Rangarajan estimates at 3.8 percent of gross domestic product in the fiscal year ended March 31, has sparked worries of an external payment crisis.
But the current account gap is likely to shrink to about 3 percent of the GDP this fiscal year as gold and coal imports are expected to fall, he said at a conference.
India's foreign exchange reserves rose USD 214 million in the week ended April 13 to USD 293.141 billion, according to latest data from the central bank.