With the Reserve Bank of India (RBI) holding interest rates despite persistent clamours for a cut, Finance Minister Arun Jaitley said the government shares a ‘healthy’ relationship with the Central bank.
“The government and the Reserve Bank have a very healthy relationship. Apart from healthy relationship, you can always afford a healthy debate in a democratic society,” Jaitley said yesterday.
Observing that the balance between inflation and growth has to be maintained, Jaitley said: “The Reserve Bank is a very experienced and professional institution. It’s fully conscious of its responsibility.”
Responding to RBI Governor Raghuram Rajan’s caution with regard to the ‘Make In India’ campaign, Jaitley said, “I do not find anything improper or incorrect in the statement because India is a very large market and therefore most of what we make is to be domestically consumed…. And certainly export also is a very important market for us. To be competitive in the market, we not only have to make in India, but also have to make it cheap.”