Rajan: India not in danger of balance of payments crisis

The new governor of the Reserve Bank of India, Raghuram Rajan, says that India has enough foreign-exchange reserves to safeguard against a repeat of its 1991 balance of payments crisis. Speaking to the BBC, Rajan said the country has reserves equivalent to 15% of GDP and that its external debt was 22% of GDP, a level he considered low enough to make an external crisis unlikely. Rajan also said that a level of 50 rupees to the dollar was too weak for the Indian currency while 68 rupees was too strong.