In view of its economic integration with the world economy, India cannot remain immune to the present global financial crisis, Reliance Capital Chairman Anil Ambani has said.
"Given its economic integration with the world economy, India cannot remain immune to the global financial crisis. The Indian equities and currency markets have already been affected by these developments," Ambani told shareholders at the company's AGM here today.
However, the impact on the overall Indian economy is likely to be far more moderate, thanks to the calibrated, cautious and conservative approach of the country's policy planners, he said.
Referring to the collapse of Lehman Brothers and distress sale of Merrill Lynch, Ambani said, "The single biggest risk facing the global markets is the multi-dimensional credit crisis in the US, which has already caused major financial casualties, and severely impacted leading high-street names from the investment and banking fraternity. This has affected consumer spending and dampened confidence all around."
The current micro economic climate has been characterised by rising domestic inflation, a weakening rupee, hardening interest rates, extreme volatility in capital markets and moderate to severe slowdown in leading global economies, Ambani said.
