Economy on road to higher growth: Jalan

Reserve Bank Governor Bimal Jalan on Saturday asserted the economy would achieve higher growth rate this fiscal in the face of strong economic fundamentals and good monsoon.

"Things are much more stable," Jalan said without giving any growth projections.

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After last year's drought, Iraq war and global slowdown, the economy has done well and growth prospects this year are bright following good monsoon and industrial revival, Jalan, who is relinquishing his gubernatorial post in October, after six years, told NDTV news channel.

Despite adverse situation, the management of economy had been good last year, he said adding "Our resilience to handle problems has improved."

On the surging foreign exchange reserves at about $83 billion, Jalan said the foreign exchange situation was comfortable and he did not see any problems in the foreseeable future.

Regarding rupee value, the RBI Governor said exchange rate is determined by market and there is no exchange rate target.

"Rupee is flexible but not volatile," he added.

Jalan indicated that in the wake of comfortable foreign exchange reserves, the movement towards full convertibility of rupee would continue and transactions abroad were much more free now.