#MarketCrash: Economic growth still below level of what India capable of, says Raghuram Rajan

As Rupee hits lowest since September 2013, Reserve Bank of India (RBI) Governor Raghuram Rajan on 24 August said that economic growth is still below the level what the country is capable of although compared to other countries, India is in a good position.

Addressing an annual banking conference of Federation of Indian Chambers of Commerce and Industry (FICCI) in association with Indian Banks Association (IBA) in Mumbai, Rajan said, "While I agree that economic growth is still below the level what the country is capable of, relative to other countries, India is in a good position.

On continued volatility of the market , Rajan said, "While I don't want to opine on future directions of markets, I would say, relative to other countries India is in a good position with strengthening growth, low current account deficit, narrowing fiscal deficit, moderating inflation, low short term foreign currency liability."

"Bandhan Bank is first new bank in over ten years. This entire conference is focused on technology in Banking which will bring about a revolution in how the industry accesses, transacts and supports the customer. Macroeconomic factors are under control, we have USD 380 billion in forex reserves. Its very important to reassure the markets that we have the macro economic problems under control," Rajan also said the priority of the central bank is to bring down inflation.

"Short term priority of RBI is to bring down inflation.The best way for a central bank to ensure sustainable growth is to keep demand close to supply so that inflation is moderate. Rajan pointed that although consumer inflation has fallen sharply, inflation expectations among the public has gone up."