There is coverage for nine months of imports, and there is no worrying factor in the decline of the country due to the depreciation of the rupee, according to experts.
The country's currency kitty continued its southward journey, with the total reserves declining by USD 5.219 billion to USD 545.652 billion for the week ending September 16, according to the Reserve Bank of India.
The reserves, which have been dipping as the central bank deploys the kitty to defend the rupee, have declined by USD 2.23 billion to USD 550.87 billion in the past week, due to the pressure caused by global developments.
State Bank of India Group Chief EconomicAdviser Soumya Kanti Ghosh said that India's has gone from USD 630 billion to USD 550 billion. There is coverage for nine months of imports, but it is not a cause for concern. He said that the rupee should find some value.
HDFC Bank Chairman Atanu Chakrabarty said India is not decoupled as it imports a large amount of energy.
He said that the rupee is down by USD 80 billion due to the depreciation of the rupee vis-a-vis the dollar.
Ahead of the RBI decision to come out on September 30, the rupee was consolidated in a narrow range and settled 13 paise higher at 81.80 against the US dollar on Thursday.
The rupee went below the 82 mark for the first time in intraday trade before falling 40 paise down to 81.93 against the dollar on Wednesday.
Chakrabarty said that the banking sector is in the pink with low NPAs and the capital expenditure cycle starting to pick up.
He said that there was a push towards infrastructure development due to the implementation of the Goods and Services Tax and digitalisation of the Indian economy.
He also mentioned that there is a big middle class in India that will drive consumption but cautioned against the high inflation which is higher than the RBI-designated band of four to six per cent.
He said that the monetary policy committee MPC will not hold a meeting tomorrow, so a cut in interest rates may not be there.
New Development Bank of BRIC countries' former chief K V Kamath viewed that a cut in rates may not have the desired impact since the present high in inflation is mainly due to food.