​Raghuram Rajan assures that rupee is bulletproof and there is nothing to worry about

The Indian currency was in a bad shape when Raghuram Rajan had assumed office as the Resrve Bank of India (RBI) governor two years ago. However, with extreme determination and key reforms, he nursed the currency back to health. And now, when the global economy is once again in a mess, Rajan is still assuring investors in the country that there is no need to panic yet.

The macroeconomic fundamentals having gone an all-round improvement, rupee is now bullet-proof against the tension of weak financial markets.

Ahead of his departure for the Annual Global Economists Conclave at Jackson Hole in the US, Rajan told the press, "There is confidence that we are actually quite healthy. Last time you did not have the confidence that is the big difference this time. We know this will pass and at some point the market will wake up and at that point start differentiating."

India has ranked among the best-performing markets, even when Lehman Brothers collapsed in 2008 creating a bad state for economy across the world. Investors favour India since it has avoided the mistakes of other central banks that kept interest rates low to stimulate growth, and a government that is more prudent with its finances.

“I don't think we are in panic mode by any stretch of imagination. We are in vigilant mode. But I think there is a general sense that we are in a much better situation than we were in 2013," said Rajan.

India's current account deficit, which peaked at 4.7% of gross domestic product (GDP) in FY13, narrowed to 1.3% of GDP in FY15.

Inflation as measured by the consumer price index, which was running at an average of more than 9%, slowed to 3.8% in July. Foreign exchange reserves are at a record high of $354.4 billion.

But Rajan, who had warned of an impending financial crisis in 2005, said the panic should soon subside. "Markets turn panicky only for limited periods of time," said Rajan. "Even in the worst environment of the last 50-60 years, during the 2008 crisis, it was a few months after which it turned normal. I have no doubt that we have enough ammunition, reserves, good policies to withstand that," he added.