As far as India is concerned, Das said, “India will be able to respond to whatever challenges emerge out of the coronavirus problem. We don’t have a problem because our foreign exchange reserves are quite robust”.
Although India is much more integrated with the global economy than it was 10-20 years ago, it is not as integrated in the global value chain as some other countries. So, to that extent, India remains insulated, he said.
However, certain sectors will face challenges because they export to China. But talks have taken place between the various stakeholders and steps are being taken to mitigate the likely problems that these sectors face.
The governor also reiterated that RBI
will take every measure needed to secure the economy against the challenges arising from COVID-19.
Earlier, it had issued a statement saying it was ready to take steps to ensure that markets run well and confidence is maintained. RBI
is monitoring global and domestic developments. Globally, financial markets
have been experiencing considerable volatility, with the spread of COVID-19 making investors risk averse and prone to banking on safe havens. Spillovers to financial markets
in India have largely been contained, the RBI