Talking to media here Finance Minister Pranab Mukherjee said that some of the investment banks have upgraded India to market weight, that means the basic fundamentals were strong.
Welcoming the decline in crude prices, Mukherjee said will help us manage inflation and also help in reducing subsidy on oil. He, however, said that that the crude prices at 102 dollar per barrel were still high. The headline inflation reached a high of 9.44 per cent in June.
On Monday finance minister said that Government Monday said, India was in a better position to handle the challenges arising out of the present downgrading in the US and Eurozone.
“India’s economic fundamentals are strong and the country can withstand any adverse impact on capital and trade flows”, said Mukherjee adding that the need was to focus more on encouraging domestic consumption and domestic growth. At the same time, the government would fast track the implementation of the pending reforms to keep up the investors’ confidence in Indian market, he said.
The Finance Minister also expressed confidence that India will see greater inflow of foreign institutional investors in view of the higher returns to global investors.