‘Need bullet-proof shield against US Fed tapering’

RBI Governor Raghuram Rajan said India needs a ‘bullet-proof’ shield against  the fallout on the economy from the US Federal Reserve Board’s (Fed) tapering of the $85 billion-per-month  stimulus programme. 

‘What we need to do is put our house in order before it (tapering) comes back. 

The postponement of tapering is only that, a postponement. We must use this time to create a bullet-proof national balance sheet and growth agenda, which creates confidence in citizens and investors alike,’ he said.

‘I do think, short-term, it (tapering) has in a sense postponed some of the concerns. My sense is that the markets were quite prepared for a moderate tapering. And, what this has done is, in a sense, it has again created the possibility of uncertainty down the line,’ the Governor added.