Domestic reforms key to India’s economic stability: Finance Minister

The Dollar Business Bureau With the vast depth and size of its market, India's ability to absorb international shocks is far stronger and this was reflected in the relative stability shown by the Indian Rupee. This was stated by the Union Finance Minster Arun Jaitley, on Saturday in response to the US Federal Reserve’s move towards increase of rates this year, say the reports. “International factors obviously have an impact and considering the vast depth, size of the Indian market, our ability to absorb those shocks is far stronger,” said Jaitley, according to the reports. Referring to the similar cases in the past, the Union Finance Minister said the domestic markets helped the Indian economy in remaining relatively stable, in times, when the international markets were more volatile. As long as we continue with the internal ability to carry on with our own reform process, India’s ability to absorb various international possible scenarios would be reasonably high, he added. Speaking on the government’s moves towards the disinvestment procedures, the Finance Minister said, “Our disinvestment target in the just-concluded year was the highest-ever and will be much more in this year.” As per the reports, the US Federal Reserve is looking towards a hike in interest rates in June, which might make the foreign investors thinks twice before investing in India, the reports added. However, on the other side, this could also favour India if the US investors start searching for better markets in view of their weakening economy, for earning good returns.    

This article was published on April 18, 2015 – 3:32 pm IST.