No need for intervention as the rupee is still overvalued by 5-7%: Niti

NEW DELHI: Niti Aayog's Vice President, Rajiv Kumar, said the rupee's weakening is not a cause for concern as the Indian currency continues to fall. overvalued in terms of the real effective exchange rate. "At this point, there is no question of being worried or thinking of any intervention because the rupee is still relatively overvalued by 5-7%," Kumar said at a conference release Tuesday.

He said that it would be unfair to compare the recent depreciation of the rupee with the US dollar with the decline of 2013, under the previous government of the Progressive Alliance led by Congress, when the currency had fallen from 57 to 68 three months. Speaking to the media about the NDA government's achievements led by Narendra Modi and the initiatives taken by the Aayog, Kumar said that this government had inherited a declining economy in 2014, but had been working to bring all macroeconomic parameters in place. 5%, high forex reserves, a budget deficit of 3.3% and a strong formalization of the economy – for faster growth. Mr Kumar said that Aayog expects economic growth of 7.5% for the current fiscal year and 8.5-9% in four years from now, thanks to strong fundamentals.

"All (macro settings) will give us sustained growth over a period of 7.5% in 19," he said. However, he warned that "the Trump crises" were leading to a desynchronization in the global economy. NITI Aayog, the country 's main decision – making body, is working on a strategy paper to increase economic growth to 8.5-9% by 2022 and maintain it thereafter.

million. Kumar said the government is committed to turning around sooner or later on Air India and that a new reflection is being made at the highest level on how to do it. The government's attempt to divest a 76% interest in the troubled national carrier did not produce any results because there were no takers on the terms offered.

NITI Aayog Vice President expressed confidence that the government will reach the disinvestment target of Rs 80,000 crore this year or could even exceed it. "The DIPAM (Department of Investment and Public Asset Management) is in the advanced phase in the strategic sale of 12 companies out of more than four dozen sick and deficit CPSEs identified by the Aayog," he said. he says.