RBI Governor Shaktikanta Das says India's CAD 'eminently manageable'

RBI Governor Shaktikanta Das

RBI Governor Shaktikanta Das sought to ease worries over risks around India's rising Current Account Deficit (CAD) saying that it is "eminently manageable and within parameters of viability".

Das said India's strong services exports and remittances will help in softening the impact on external deficit due to slowing of merchandise demand globally.

He said India needs to leverage the bilateral trade setup in an era of growing de-globalisation and protectionism.

"On the external front, de-globalisation and protectionism are gaining ground as witnessed during the recent global supply-chain shock. It is thus necessary to build and strengthen bilateral trade relations to deal with such challenges. India has recently signed bilateral trade agreements with the UAE and Australia and more such agreements are works in progress," the governor said.

On the issue of price rise, he said that core inflation is still sticky even though there has been a softening in November and December.

Das said that India has been hailed as a bright spot globally and its financial system remains robust and stable.

On rupee depreciation, the governor said that the Indian currency has performed better than its emerging market peers.

He said rupee's depreciation has been lower in each successive cases of global turbulence since the global financial crisis.