The Prime Minister has ruled out reversal of globalization of Indian economy or India witnessing a repeat of the 1991 balance of payments crisis. Speaking to reporters in New Delhi today Dr. Manmohan Singh said in 1991 the country had foreign exchange reserves for only fifteen days. But, now the nation has reserves of six to seven months. So there is no comparison and no question of going back to 1991 crisis.

About the volatile rupee value in the market he said at that time foreign exchange in India was a fixed rate. But, now it is linked to market and therefore the volatility of the rupee is only corrected.

Releasing a book ” RBI History 1981-1997″ written by RBI Governor D. Subbarao, he admitted that the Current Account Deficit is still high. He said the high imports of gold is one of the major factors contributing to it. Dr. Singh also said, people seem to be investing a lot in unproductive assets.

Making his brief remark on the occasion, Dr. Singh lauded the RBI's role in shaping the country's monetary policy. He said, the Apex bank has served the nation with great distinction and the best is yet to come.

RBI Governor D Subbarao rejected as unfair criticism that the central bank was obsessed with inflation ignoring growth. He termed as oversimplification that governments are for growth and central banks are for price stability.

He said, it is another oversimplification to assert that there is a tension between growth and inflation and that one has to play a trade off between the two in policy making. Subbarao, who will demit office on September 4, said the most important debate is about balancing between growth and inflation in the policy context.