(a) Whether the Government has any plan to freeze the foreign
currency reserves upto 150 billion dollars;
(b) If so the details thereof;
(c) Whether high foreign currency reserves put pressure on the
Indian economy and also increase the interest rates;
(d) If so, the remedial measures taken in this regard;
(e) Whether Government has any plan to divert this fund to development of infrastructure in the country; and
(f) If so, the details thereof?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PAWAN KUMAR BANSAL)
(a)& (b): India`s foreign exchange reserves stood at US dollar
160.7 billion as on April 28, 2006. There is no proposal to cap
such reserves at a level of US dollar 150 billion.
(c) & (d) : There is no evidence to suggest that increase in
foreign exchange reserves in recent years has adversely affected
economic growth or interest rates. While the economy has achieved
GDP growth rates between 7.5 - 8.5 per cent during the last three
years, the RBI`s bank rate has remained stable at 6.0 per cent
during this period.
(e) & (f): There is currently no proposal to utilize a part of the
foreign exchange reserves directly to fund infrastructure development.