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Expressing optimism over state of Indian economy, former RBI Governor Bimal Jalan has said that the country’s economy is in good shape as India’s GDP growth rate and foreign exchange reserve are high. Notwithstanding economic uncertainties triggered by the Russia-Ukraine war that is also impacting the global supply chain, Jalan said it is not going to affect India’s economic performance. He added that India’s current macroeconomic situation is quite positive in the sense that the rate of growth is high. India’s foreign exchange reserve is also very high.

However, the former RBI governor has stressed that unemployment is high, which is a matter of concern. As the Russia-Ukraine crisis is concerned, he said obviously, it will have an impact all over the world. He said but so far India is concerned, its relationship with Russia was quite good but exports-imports was not very much, and added that it was less than 2 per cent. While observing that development in Ukraine is a matter of concern, he said it is not going to affect India’s economic performance.

Jalan noted that high inflation is a problem. Retail inflation hit an eight-month high of 6.07 per cent in February, remaining above the RBI’s comfort level for the second month in a row, while wholesale price-based inflation soared to 13.11 per cent on account of the hardening of crude oil and non-food item prices. Regarding high petrol and diesel prices, he said the government has already cut some taxes on petrol and diesel. He said ‘And some more taxes if they can reduce, (then) that is desirable’.