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'Financial crisis will not impact Indian growth'

Source: PTI
September 17, 2008 11:34 IST
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The current turmoil in the global financial markets is unlikely to have an adverse effect on India's healthy growth rate or on the huge investments it is attracting, Indian Minister of state for Commerce and Industry Ashwani Kumar has said.

Admitting the crisis might have slight impact on the functioning of the Indian economy, Kumar expressed confidence that fiscal management will insulate it to the maximum possible extent, asserting that the US and India would continue to be in a "very tight economic embrace."

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The American economy is resilient and dynamic and current crisis could be just cyclic or temporary aberration, he told reporters.

Kumar, who is here to deliver a series of lectures in Harvard University, said, money flows only to countries whose economies are resilient and give higher returns, with India fulfilling both qualifications.

The Indian economy is resilient, its economic fundamentals strong and it has 400 million strong middle class with huge purchasing power, he said. Besides, India is strengthening its infrastructure at huge cost.

The Chinese economy on the other hand, Kumar stressed, has reached a saturation point, while India will continue to be one of the principal destination.

Replying to a question, he also expressed hope that the Indo-US Nuclear Deal would clear the Senate by the time Prime Minister Manmohan Singh holds summit with President George Bush on Sept 25 in Washington.

He also praised the Bush administration for its "forceful diplomacy" and time interventions at critical stages during negotiations of Nuclear Suppliers Group.

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