The macroeconomic strategy has focused on demand management so as to reduce outward foreign exchange flows while alleviating the financing pressures that have been placed on government by large fiscal imbalances. This strategy has been buttressed by measures to enhance the economy’s long term competitive position through fiscal incentives for the foreign exchange earning and saving sectors.
Through his leadership, Governor Jha made the Reserve Bank an influential force in shaping these initiatives. The distress suffered by the poor because of the overall scarcity situation resulted in poverty reduction becoming the overarching consideration of all policy. The Reserve Bank, under Dr. Jha’s stewardship, contributed to designing and implementing many of these anti-poverty policies.