New Delhi: Finance minister Pranab Mukherjee on Saturday asserted that India’s growth story is intact and the country would achieve appreciable economic expansion despite negative sentiments across the world.
“Our growth story is intact and fundamentals are strong. Our markets have the capacity to withstand the negative sentiments affecting the external world,” Mukherjee said while addressing the industry captains at a function organized by the Confederation of Indian Industry (CII).
Mukherjee’s comments come in the wake of Standard & Poor’s downgrading the sovereign rating of the US government from ‘AAA’ to ‘AA+’, a development which raises concerns that investors will lose confidence in the American economy.
Commenting on the sharp fall and partial recovery in stock markets on Friday, the finance minister said, “These sentiments in the developed nations affected our markets on last Friday. But we witnessed some recovery already and this is testimony to our capacity for resilience.”
The Bombay Stock Exchange benchmark Sensex on Friday had plunged over 700 points but recovered some of the lost ground to settle at day at 17,305.87, down 387.31 points.
India has taken several measures to make its markets attractive, robust and vibrant and would continue to do making it an attractive investment destination for foreign capital, the finance minister said.
Mukherjee, however, expressed concern over high inflation and said, “Our major challenge in the short-term is inflation, which has implications of sustaining our growth momentum.”