RBI will focus on progress of SW monsoon: Gokarn
Chennai: The Reserve Bank of India would pay more attention to the progress of the south west monsoon as it goes into its "policy date", RBI Deputy Governor Subir Gokarn said on Wednesday.
Observing that the monsoon had made some progress over the last two or three days, he said, "it is a fact we will obviously pay close attention to it, as we go into our policy date."
"I think, as we are hearing, it is really first two weeks of July (which) are quite significant (with regard to the effectiveness of the monsoon)...We are still in the early part of that period. So we are watching, as everybody else is to see what progress it is making. ..", Gokarn told reporters here on the sidelines of a seminar.
However, the RBI would consider, if there is a problem in the progress of the monsoon.
"I am not in a position to make judgements on the progress of the monsoon. We rely on the Meterological department for forecast. But, if there is a problem, we will take it into our consideration", he said.
According to IMD, India's monsoon appeared set to march ahead this week, as weather conditions were favourable for advance of the seasonal rains into parts of Maharashtra, Gujarat and Madhya Pradesh.
Referring to the current account deficit, he said "the capital inflows are not matching (the expectations) and putting pressure on the rupee".
"As it (current account deficit) corrects for whatever reasons, whether it is oil prices or exports picking up or imports going down, that will obviously have a reverse effect, which will help to stabilise the rupee", he said.
The seminar on "Vision Tamil Nadu" - Building Sustainable Tomorrow - The Banking Perspective,was organised by ASSOCHAM.
Earlier, praising Tamil Nadu for its presence across various sectors, Gokharn said, Tamil Nadu reported 12.5 percent growth in 2011-12 against the all India GDP growth of 6.5 percent, he said.
"Tamil Nadu has managed to show resilience during the bad times mainly due to diversification..".
It can be a good example on how diversification is a best way for lesser risk, he said at the seminar.
The total industry's contribution to the State's GDP growth was 30.5 percent in 2001-02, which dropped to 24.8 percent in 2011-12.
This was due to increase in the contribution of service sector which rose to 65.8 percent in 2011-12 from 52.8 percent, he said.
According to the study -- "Achieving Higher Growth in Tamil Nadu", that was released by Gokharn, as of June 2012, Tamil Nadu has attracted investment proposals worth of Rs 9.2 lakh crore with 1,637 projects.
Power sector accounted the major share of 38.5 percent (over Rs 3.5lakh crore) of the total investments followed by services 32.3 percent, manufacturing 17.5 percent, and real estate 9.6 percent, the study revealed.
The State has emerged as favourite destination for domestic and foreign investors considering that about 48 percent of investment projects were under implementation while over 42 percent at MoU stages, ASSOCHAM President Rajkumar Dhoot, said.