MUMBAI: Jalan, credited with keeping the Indian financial system untouched by the Asian financial crisis and building a robust foreign exchange reserve base, has become a member of the Rajya Sabha, the upper house of Parliament. Prior to his appointment as the 21st RBI governor, Reddy was India's executive director on the board of the International Monetary Fund (IMF). Reddy will have a five-year term. Speaking to reporters here, Reddy, who has also served as a deputy governor of the RBI, said he would continue with the reforms process initiated by his predecessor. "Even reform is a continuous process. Continuity and change will be mixed appropriately depending on the context," he said. Reddy's takeover comes at a time when the country's economy is set to achieve high economic growth. The RBI said last month the earlier economic growth projection should now be enhanced significantly in the light of the expected strong agricultural recovery. The bank had in April made a projection of six percent growth for 2003-04. India's agriculture-reliant economy grew by a moderate 4.2 percent during 2002-03 on a sharp dip in agricultural output. Reddy started out as an academic in a remote village in southern India before joining the civil service in 1964. He has spent most of his career working in the areas of finance and planning at both the state and central government levels. As deputy governor in the RBI, Reddy looked after the monetary policy, exchange rate policy, internal and external debt management, foreign exchange reserves management and economic research. Reddy's predecessor Jalan not only managed to quash the impact of the Asian financial crisis on the Indian economy but also saw the country's foreign exchange reserves rise to record levels. India's foreign exchange reserves currently stand at a whopping $86 billion, as compared to about $27 billion six years ago. Jalan is also credited with reining in inflation rate and maintaining a comfortable balance of payment situation.
Source: IANS