Increased global competitiveness by Indian companies: RBI

Mumbai, Apr 18 (UNI) There are a number of positives in the Indian economy presently such as a savings rate of 30 per cent, a sustained investment rate of 32 per cent, a high economic growth potential and increasing business confidence, said Reserve Bank of India Deputy Governor, Rakesh Mohan here today.

Addressing journalists at the RBI headquarters after the announcement of the annual credit policy statement by the Apex bank, Dr Rakesh Mohan said that the competitiveness of Indian companies had also increased considerably of late with many of them going global.

''With many Indian companies indulging in overseas acquisitions, their competitiveness will increase still further,'' he averred.

''We considered all these factors and coupled with the monetary tightening we did in the previous quarter, we decided to let the bank interest rate, reverse repo rate, repo rate and the cash reserve ratio remain unchanged,'' he said.

According to him, there were some global risks that needed to be factored in such as the high volatility in oil prices, global imbalances with the US trade deficit up and showing no signs of reduction, rising asset prices globally including in India and monetary tightening in various parts of the world.

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