Rupee crisis: PM Modi holds economy review meeting with RBI governor, FM Arun Jaitley

Amid the historic depreciation of Indian rupee and weakening growth, Prime Minister Narendra on Friday chaired a crucial meeting to take stock of the economy. Finance Minister Arun Jaitley, RBI governor Urjit Patel along with the top officials of the Prime Minister’s Office (PMO) and Finance Ministry were present at the meeting.

In the meeting, Modi reviewed the condition of the world’s economy and factors which can affect the India economy. The Prime Minister was also said to have discussed the depreciation of the rupee against the US dollar and skyrocketing fuel prices.

 “PM held a meeting today in which RBI's governor and deputy governors, officials of the Finance Ministry and PMO officials were present. In the meeting RBI Guv gave a detailed presentation about the condition of world's economy & external factors which can affect Indian economy,” Jaitley said in a media briefing after the meeting.

Jaitley said that the inflation in the country was in “moderate range” and claimed that India’s growth rate was better than many other foreign nations.

“Our growth rate as compared to other countries of the world is quite high. Inflation in our country stays in a range & that range is moderate,” the finance minister said.

In the past couple of weeks, the Indian rupee has been sinking to record low against the US dollar. On Wednesday, rupee had collapsed to the lifetime low of 72.91 against the US dollar at the interbank foreign exchange market.

RBI has enough ‘ammo’ to defend rupee: Finance Ministry

Meanwhile, Sajeev Sanyal, the Principal Economic Adviser in the Finance Ministry has said that the Reserve Bank of India has enough foreign exchange reserve to defend the falling rupee.

“RBI has quite correctly preserved ammunition in terms of foreign exchange reserve. It has$400 billion worth of it quite enough to defend rupee if necessary and so it continues to have that ammunition that the powder's dry and should the necessity be to defend rupee it'll be done,” ANI quoted Sanyal as saying.

Sanyal, however, claimed that while the rupee had fallen against the US dollar, it remained stable against most currencies.

“Rupee has depreciated very significantly since the beginning of the year. But if you take a 5-year perspective you'll see the Rupee has by & large been stable against most currencies with just one exception of the dollar” he added.