Mumbai attacks will not slow investment: Kamal Nath

Mumbai attacks will not slow investment: Kamal Nath

New Delhi: Indian Trade Minister Kamal Nath said on Thursday the attacks on high profile targets in the country’s commercial capital would not slow investment into an ecomomy already under strain.

At least 86 people were killed by gunmen in the attacks on some of Mumbai’s top hotels, a popular cafe, a busy railway station and other locations. Hostages were taken in two of the hotels.

“This does not have an economic component. It’s an unfortunate event. These type of things have happened in New York and other major cities," Nath told Reuters by telephone.

“(There will be) no slowdown in investment flows."

The global downturn has already rattled Indian financial markets and a credit squeeze has prompted the government and central bank to take a series of measures to lift sagging growth.

The Reserve Bank of India expects the economy to expand by 7.5-8% in the 2008-09 fiscal year, slowing from 9% posted in the last three years.

India’s capital market regulator said the country’s two major stock exchanges would remain closed on Thursday.