With US Federal Reserve seeking to maintain status quo on its stimulus programme, the Finance Ministry said it was business as usual for them and the need was to focus on deepening of economic reforms to strengthen the Indian economy.
Talking to reporters in New Delhi, Economic Affairs Secretary, Arvind Mayaram said the government will continue with the reforms process. “We should not overly put emphasis on the decisions of the US Fed in the manner in which the economy will unfold. It is business as usual for us, as far as we are concerned,’’ he added.
The US Federal Reserve said on Wednesday that it will continue with its monthly $85 billion bond buying programme and wait for more evidence of growth recovery. “I think we will need to continue to deepen our own reform process so that we continue to strengthen the economy. We believe with the steps that the government has taken, the economy will continue to show signs of growth and that is what is going to strengthen the rupee and strengthen the markets,’’ Mr. Mayaram said.
The government has taken steps to revive investments and promote exports and manufacturing as it battles slowing economic growth and seeks to contain the fiscal and current account deficits. “I think as far as we are concerned, we would have thought it would have been good if there was some kind of policy guidance from the Fed so that there was certainty as to how the taper will happen, but nevertheless we believe what we are doing is right,’’ he added.
Commenting on the US Fed's decision to delay the tapering of the bond-buying programme, Financial Services Secretary Rajiv Takru said the markets have given sufficient indication about how they have perceived the move. “We have to plan in our interests. And we were ready for any kind of a decision which was taken. So we are happy, I think we were ready for both. The domestic currency has to follow the market diktats. I think it is still a little undervalued,’’ he said.
