NEW DELHI: Reserve Bank Deputy Governor H R Khan today said it will be difficult to maintain high growth and CAD at sustainable level amid falling exports.
“Our exports have come down. It will be difficult to maintain high growth rate, if export growth comes down,” Khan said at an event organised by PHDCCI here.
“Sustainable CAD will also depend on exports. We have trouble in exports,” he added.
India’s exports dipped for the 14th month in a row, down 13.6 per cent in January to USD 21 billion due to fall in shipments of petroleum and engineering goods, although trade deficit showed improvement.
The RBI Deputy Governor said that although inflation is in control but food inflation is going be a problem for India.
“Inflation is in control in India. But food inflation is going to be structural issues in India. Food inflation gets into general inflation,” Khan said.
He said the central bank’s idea is that we should open our debt market gradually.
He said ‘Make in India’ should become “Create in India”.
Khan said India has over the year increased engagement with rest of the world.
“Export growth is important and we need to access new markets,” he said.
He noted that we are all focused on health of India’s banking sector.