New Delhi. In the history of India, the year 1991 is considered very important from the point of view of economic reforms. Before this India’s economy was not open. In the context of 1991 and after, many big things have been revealed from the book of Dr. C. Rangarajan, former Governor of Reserve Bank of India. In his book The Road: My Days At RBI and Beyond, he has mentioned the worrying circumstances of that time.
Moneycontrol According to a report from the U.S., former governor C. Rangarajan has written that we (India) had to think of ways and means to raise money. Then we decided to raise money by pledging gold abroad. 46 tonnes of gold was mortgaged abroad. A charter plane was at the Mumbai airport and this gold was kept in it. Then this ship flew to England. Then we raised less than $500 million. Today this amount may seem very less. It was a sad experience to be sent abroad with gold in a plane, but, we have to face it.
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In his book The Road: My Days At RBI and Beyond, former RBI Governor Padma Vibhushan Dr. C. Rangarajan covers his experiences and major milestones regarding the Indian economy.
How did the idea of writing the book come about?
Rangarajan says that this desire to write a book was there for a long time. After the change of government at the Center in 2014, I left Delhi. Then I thought it was the right time. Then I had some doubts in my mind. It was not possible to write about all the events of my tenure in the Reserve Bank. Then, I thought of focusing on certain things.
Today’s inflation, because of past decisions
C. Rangarajan says that several measures have to be taken to manage the tussle between fiscal policy and monetary tightening. To some extent it can be said that the inflation we are seeing today is because of some of the decisions we took earlier. When the Corona wave was at its peak, everyone had advised the government to increase its expenditure. This advice of the government was given when the revenue of the government was decreasing. What was the result of this? Had to borrow more. If the borrowing increased, it needed to be kept in mind. The central bank may hesitate to admit it openly, but the truth is that this borrowing would not have been possible without adequate liquidity support from the RBI.
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What to say on Rs.
Former governor C. Rangarajan said that as far as the rupee is concerned, the funds started going out of the country to America, because the interest rate started increasing there. Due to this the value of Rs. But, again the rupee is recovering. The reason for this is to stop the outflow of funds. Funds have started coming in. In India too, monetary policy will have to take care of those things which are happening outside.
Tags: business news, economics, Golden, India economy, Indian economy
FIRST PUBLISHED : November 14, 2022, 14:25 IST