FIEO president welcomes appointment of Shaktikanta Das as new RBI Governor

Ludhiana, December 12, 2018: Welcoming the appointment of Mr Shaktikanta Das as the new RBI Governor, Mr Ganesh Gupta, President, FIEO said that his previous exposure as Revenue and Economic Affairs Secretary would come very handy in dealing with vexatious economic issues confronting the country. Mr Gupta said that the new Governor will act as an effective bridge between the Government and the Central Bank so as to give necessary boost to the Indian economy. Mr Das would be able to address the concern of the states having worked in the Finance Commission.

FIEO Chief hoped that the new Governor will ensure flow of credit to exports sector, which is declining sharply on year-on-year basis affecting the liquidity of exporters particularly the MSMEs.

While exchange rate is market driven, Mr Gupta propagated for RBI intervention to stem extreme volatility in Rupee as it is neither beneficial for exporters nor importers. A movement of Rupee in narrow band of 5 per cent would be more appropriate for export sector as near predictability in rate would reduce the cost of hedging as well.