The Reserve Bank of India will not 'intervene' to manipulate the rupee now that it is appreciating, apex bank governor D Subbarao said today. "Our policy is to intervene only to tackle volatility, not otherwise," he maintained.

The rupee's sharp slide this year has hurt the economy with imports -particularly oil - turning costlier and exports dwindling due to the crisis in the global markets. "Our export growth has turned negative due to the depression in key export markets of Europe and the US," said RBI deputy governor K C Chakrabarty. The way to get around that problem, he said, is to look at new markets in South East Asia, Latin America and Africa.

Subbarao also added that exports depend on more than just the pricing advantage. "Exports also depend on better products and productivity, keeping inflation under control and macro economic stability," he said. "Around the world there has been a crisis and its impact is being felt in India as well. For us to come out of the crisis, the world has to come out too."

Keywords:The Reserve Bank of India ,apex bank governor, D Subbarao ,global markets, export , export markets, RBI deputy governor K C Chakrabarty, pricing advantage, products ,productivity,macro economic stability,business news