crisis may have second-order impact on Indian economy: FM
Jan 24: Anticipating an indirect impact of the US financial
crisis on the Indian economy, Finance Minister P Chidambaram
on Thursday said the country needs to respond appropriately
to the contagion in the global markets.
effects of the crisis spreading from one market to the other
(will) have to be carefully measured and responded appropriately,"
Chidambaram told reporters here at the World Economic Forum
to the impact of the US mortgage crisis on Indian economy,
he said, "we did not suffer any first order effect. But
we anticipate that there will be some second order impact."
crisis in the Indian stock market, which saw a sharp plunge
earlier this week on global concerns, would "pass over
in a few days," Chidambaram said.
the moment, since there is such a deep uncertainty, investors
are hit by a sense of apprehension and that is why they are
selling," he said.
stock market's benchmark index Sensex plunged by close to
2,300 points during January 21-22. After a recovery of 864
points yesterday, it again sunk today.
are estimated to have lost over Rs 16,00,000 crore since January
14, when the downslide began.