"Today we are all self-insured. Today I would argue that India has at least two or three layers of defence (against capital flows)," Rajan said while delivering a lecture at the Madras School of Economics.
"First layer of defence against volatile capital flows is our good macroeconomic environment... Now I think we are in much better situation," he said, referring to the capital flight and the rupee fall the country had witnessed after mid-2013.
Elaborating further, Rajan said the current account deficit -- which had widened to 4.9 percent in FY13 – is low, the fiscal deficit is down and the inflation has also been contained.
For the current fiscal, CAD is pegged at 0.9 percent of GDP, as against around 1 percent in fiscal 2014-15.

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