The Reserve Bank of India Governor Raghuram Rajan said he did not expect significant selling from foreign investors in India due to Britain’s vote to leave the European Union because of better economic fundamentals and upcoming government reforms.
Rajan, in a phone interview with ET NOW television channel, also said the central bank would ensure orderly movement in financial markets and was prepared to inject appropriate amounts of domestic as well as foreign liquidity into markets.
“As of now don’t see significant amount (of capital) flowing out,” Rajan said. Rajan also said: “The Indian economy has good fundamentals, low short term external debt, and sizeable foreign reserves. These should stand the country in good stead in the days to come”.
Rajan added India needed to focus on forming its monetary policy committee and passing a key tax reform or the goods and services tax (GST) to ensure macro-economic stability.