While expressing optimism that people will look at stable emerging markets, including India, Rajan said the falls in these economies are actually 'markets' problem' and not of the economy.

The rupee, Rajan said, has been "relatively strong" in the EM currency basket, but India is affected by the "same kind of jitters" impacting other world markets.

Asserting that monetary policies alone cannot change the world, the RBI Governor said at the World Economic Forum (WEF) that there are various other tools to carry forward reforms and boost growth.

Not just enabling but also creating the underlying framework for growth is the one which will take us a long way," he said, adding that monetary stimulus has largely run its course.

The RBI Governor also downplayed concerns about China and said that country keep making fresh efforts to resolve their economic problems.

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