Stable currency most important for India: Expert

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New Delhi, April 5 (IANS) With India’s macro economic stability making it an attractive destination for foreign investments, the country requires a stable rupee to maintain the current substantial level of foreign inflows, according to a foreign expert.

“Now they realise that India has macro-economic stability… and what has attracted more money to India is basically a strengthening rupee. I maintained a year ago already that for India the most important is to have a stable currency,” Marc Faber, publisher of the Gloom Boom & Doom Report and Director of Marc Faber Ltd. told BTVi in an interview.

“There were some concerns about elections in India and about the cash scheme (demonetisation) that was launched last October-November. So, there were many reasons why people stayed out of India,” he said.

The Indian rupee has strengthened by almost 2.8 per cent in March 2017, breaching the 65-level. On Wednesday, it strengthened by 15 paise to 64.88 against US dollar from its previous close of 65.03 to a greenback.

In terms of investments, provisional figures from the stock exchanges showed that till last week, the foreign institutional investors (FIIs) purchased stocks worth Rs 7,226.29 crore during the week, while domestic institutional investors (DIIs) bought scrips worth Rs 4,245.98 crore.

Faber maintained that the growth factor for most Asian countries, including India, is not exports but the domestic market.

“For India, the export dependency is not that high. I think, in some sectors, India is very competitive and I think the big gross potential for the whole Asian region is no longer exports, but domestic growth,” Faber asserted.

“If we measure the Middle East to the Far East and Russia, including India, China, Indonesia we have 3.6 billion people. It should be possible for these 3.6 billion people to grow, specially given the low GDP per capita in most countries.”

–IANS

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