Attributing the plunge in the stock markets to global factors, Economic Affairs Secretary Shaktikanta Das said that government was prepared to deal with the challenges and stressed that 7.6 per cent GDP growth projected by the CSO for the current fiscal was "noteworthy and very significant".
"Over the last few days the NSE and BSE have experienced a lot of volatility. The decline in our markets is comparable to rest of the world... India is not an exception, but it is better off than many other markets," he said.
The benchmark BSE Sensex plunged over 807 points on sustained selling by funds and retail investors amid weak Asian cues. The 30-share index closed 3.40 per cent down at 22,951.83 points. Similar losses were witnessed in the NSE Nifty.
Das on his part assured the investors that "government is keeping a very close watch on international and global development and government is prepared to deal with all these challenges".
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He further said that government would revise the interest rates for small savings schemes in a day or two to align them with the market rates. The interest rates on girl child and senior citizen schemes, however, will not be revised.
about 10 per cent decline (since February 10, 2016) "but if you compare with other markets -- Japan lost 21 per cent, S&P 500 of US 10.35 per cent, Hong Kong 14 per cent, Singapore 12 per cent, UK 10 per cent and Shanghai 28 per cent."
He added that amid the global turmoil, 7.6 per cent growth rate for the current fiscal was not bad although the agriculture sector would continue to remain a challenge.
"Given this kind of volatility and turmoil prevailing all over the world in the global economy, the growth forecast for the current year at 7.6 per cent is definitely noteworthy and very significant," he added.
As regards the turmoil in currency markets, he said the decline in rupee via-a-vis dollar is not something peculiar to India as many other currencies have witnessed similar movements.
"World over currencies are affected. All currencies are facing depreciation. Rupee direction is not exceptional and we are quite better off than other currencies," Das said, adding that investors are pulling out and moving to US which is putting pressure on foreign exchange market.
Das said the rupee in respect of other currencies like euro and yen has appreciated 9 per cent and 4 per cent respectively.
The rupee was trading at 68.14 to a dollar, down 0.29 paise over yesterday's close, in the afternoon.
Das further said that was also some kind of uncertainty with regard to US federal reserve hiking interest rates and its monetary policy outlook which is making some investors move to the US.