Manage exchange rate to control inflation: Australian economist
India needs to effectively manage the exchange rate as banning exports of commodities alone will not help in containing inflation.
By PTI |
NEW DELHI: India needs to effectively manage the exchange rate as banning exports of commodities alone will not help in containing inflation, Australian economist Peter Drysdale said on Thursday.
"India has to think about managing exchange rates, banning exports would not solve the problem," Drysdale said on the sidelines of a lecture here.
The inflation rate is ruling at 13-month high of 6.68 per cent, forcing the government to take a slew of measures, including banning the export of non-basmati rice and reducing the import duty on edible oil.
The rupee had appreciated 12.3 per cent last year easing the price line to below five per cent.
India is no more a small country and is expected to do even better in terms of economic growth by 2020, he said.
Peter was speaking on the subject 'Australia, India and Asian Integration: Building upon the East Asia Summit' and stressed upon the need for inter-regional integration in Asia.
Asia including India will have a lot of responsibility towards the global economy once it becomes the superpower, he added.
Drysdale is professor of economics and visiting fellow in the Crawford School of Economics and Government college at the Australian National University.
Former RBI governor and Rajya Sabha member Bimal Jalan was also present at the lecture.
"India has to think about managing exchange rates, banning exports would not solve the problem," Drysdale said on the sidelines of a lecture here.
The inflation rate is ruling at 13-month high of 6.68 per cent, forcing the government to take a slew of measures, including banning the export of non-basmati rice and reducing the import duty on edible oil.
The rupee had appreciated 12.3 per cent last year easing the price line to below five per cent.
India is no more a small country and is expected to do even better in terms of economic growth by 2020, he said.
Peter was speaking on the subject 'Australia, India and Asian Integration: Building upon the East Asia Summit' and stressed upon the need for inter-regional integration in Asia.
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Asia including India will have a lot of responsibility towards the global economy once it becomes the superpower, he added.
Drysdale is professor of economics and visiting fellow in the Crawford School of Economics and Government college at the Australian National University.
Former RBI governor and Rajya Sabha member Bimal Jalan was also present at the lecture.
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