Mumbai: “The financial meltdown in the US economy is unlikely to affect the Indian commodity sector but there is a need to strengthen the regulatory mechanism in the country,” a top government official said.
“The financial meltdown in the US is a great lesson for us. It may not affect the commodity sector in India but we need to strengthen our regulatory mechanism,” Forward Markets Commission Chairman B C Khatua said, while addressing the Globoil India conference here.
Asian countries and India have successfully bounced back from the 1997-98 meltdown. “We have a great lesson to learn from this (US crisis),” he said.
“US meltdown was a case of greed for money. Allowing markets to go unregulated is a dangerous thing. The US housing and financial sectors have been pretty ambitious and greedy in the race to retain the number one position,” Khatua said.
“In India, it is unimaginable for a strong company to go bankrupt in a year’s time, as here the growth came from strong fundamentals,” he said.
The recent crude price hike was due to rampant speculative activities.
“The world consumption for crude is 87-million barrels per day and the production is also at the same level. Then why should its price rise substantially?” he asked, adding that the crude price hike was due to the $230 billion investment by speculators.