'Some impact' of U.S. slowdown on India: Chidambaram

Thursday, 17 January 2008, 20:30 IST
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Gurgaon: A slowdown in the U.S. economy will have some impact on India, Finance Minister P. Chidambaram said here on Thursday. "If the U.S. economy goes into a recession it will have drastic implications on the global economy and India, too, will have to bear some consequences," Chidambaram said while addressing a session on "Indices for Development: Need for Change?" at The Partnership Summit organised by the Confederation of Indian Industry (CII) here. He was responding to a question raised by Sunil Kant Munjal, CII past president and co-chairman of the summit, on the possible impact on India as a result of slowdown in the U.S. economy. "A slight slowdown will not impact India as our exports to U.S. are not very large. India is not so dependent on the U.S. We export equally to Europe and eastern countries like China and Japan," Chidambaram added. The impact will not be drastic unless the U.S. cuts down its interest rates since this will lead to a differential between the two countries' interest rates. "This will have consequences like reduced capital flow and faster appreciation of the rupee," the finance minister maintained.
Source: IANS
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