New Delhi [India], February 1 : The Centre and the Reserve Bank of India (RBI) are closely monitoring the movement of the rupee and fluctuations in gold and silver prices, and will take action as required to safeguard macroeconomic stability, Anuradha Thakur, Secretary, Department of Economic Affairs (DEA), said on Sunday.
"As far as the rupee or the increase in prices of silver and gold is concerned, our job as a government and with the RBI as the main regulator is to monitor these developments and, from time to time, use the instruments available under rules, regulations and laws," Thakur said. She added that maintaining the rupee within a certain range is a delicate exercise.
Highlighting the government's focus on manufacturing, the Secretary said the sector has witnessed significant progress since 2014 with initiatives such as Make in India and the Production-Linked Incentive (PLI) schemes. She said the Union Budget further strengthens this momentum, and lays foundation for long-term growth.
"This year's Budget gives a major push to manufacturing. Initiatives such as Semiconductor Mission 2.0 and the development of rare earth corridors are examples of the long-term vision reflected in the Budget," she said.
Expressing confidence in the equity markets, the Secretary, DEA said the market is expected to recover as the Union Budget has laid out several concrete steps to strengthen medium- and long-term growth prospects.
"These measures are being implemented in partnership with the private sector, whether it is medical hubs, university townships or other initiatives. I am quite confident that the market will recover," she said.
On foreign portfolio investments (FPI), she said, "Such flows are inherently cyclical. The current phase reflects profit booking by investors and the availability of higher interest rates in some global markets, which has prompted capital movement away from India."
"Given the strong long-term growth prospects outlined in the Budget, the market will eventually recover and continue to grow," she added.