Bangalore: Terming India's economy as the "fastest growing", despite drought and global economic conditions, Reserve Bank of India (RBI) Governor Bimal Jalan on June 16 said the country's monetary liberalisation policy is being adopted by other nations in the Asian region.

"Despite drought and problems associated with world economy, the Indian economy is the fastest growing. The economy is positive on the external front," Jalan told reporters in Bangalore on the sidelines of the 32nd annual meeting of the Asian Clearing Union (ACU).

"The monetary policies of India are being adopted by other countries in the region and other member states of the ACU Jalan said.

Declining to comment on the possible impact of the delay in the monsoon on the economy, he said, "let's wait and watch".

Asked on whether the issue of a "South Asia Monetary Union" would be raised during the deliberations, Jalan said, these discussions should be taken at the government level and this was not the forum for it to be discussed.

RBI Deputy Governor Rakesh Mohan said the inflation rate at 5.45 per cent was consistent with the monetary policy and it was expected to go down further in the second quarter.

PTI