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RBI man calls for cut in import

Reduce import and increase export.

This was the simple advice of Reserve Bank of India (RBI) chief general manager (foreign exchange) C.D. Srinivasan to Jharkhand’s business community.

Srinivasan had come all the way from Mumbai to attend an interactive session, Forex for You, organised by the RBI’s foreign exchange department in association with Federation of Jharkhand Chamber of Commerce and Industries in Ranchi on Friday.

Srinivasan advised against excess import as he felt that the foreign exchange reserve of the country, that stood at 292 billion dollars at present, was “not an infinite resource.”

“There is no definite idea as to what should be the ideal foreign exchange reserve. So we should attempt to increase it and not use it for non-productive purposes,” he said.

Earning foreign exchange by export is always welcomed and encouraged, he further said and added that Jharkhand traders had scope to do that by exporting products like mica powder.

According to Srinivisan, import must be restricted for securing forex reserve. He elaborated that restriction on crude oil export was not possible as the country needed it but importing gold could surely be restricted.

“In order to avoid hassles, be within the provisions of Foreign Exchange Management Act and don’t go beyond it,” he advised the traders.

M.K. Verma, regional director, RBI (Bihar and Jharkhand) said that these type of interactions spread awareness about foreign exchange among all concerned.