New Delhi: Finance minister Pranab Mukherjee said that the recent developments in the US and Europe would not have a major impact on the country as its economic fundamentals are sound.
The Congress Party-led United Progressive Alliance government also plans to quicken the pace of implementation of pending reforms to insulate the nation from global uncertainties, Mukherjee said.
The government will “focus on encouraging greater domestic consumption and give impetus to the drivers of domestic growth,” Mukherjee said in a statement on Monday.
The global developments could have “some impact” on India, Mukherjee said. “But as India’s growth story is intact and its fundamental strong, we are in a better position than many other nations to manage the challenge.”
“India’s growth story is strong, we could see FIIs (foreign institutional investors) seeing India as an attractive investment destination even if there is any temporary outflow,” Mukherjee said. “In addition, we could rather see faster and greater FII inflows unlike after 2008, in view of the higher returns that global investors could get in India.”
Indian institutions are strong and are prepared to address any concern that may arise on account of the present situation, Mukherjee added.
“Softening of international commodity prices, specially fuel oil, will help check inflationary pressures in the economy. It will also help in maintaining the fiscal balance for the year 2011-12,” he said.