India would get away lightly with the global financial meltdown which has pushed the economies of the developed world into a recession, according to Planning Commission.
"The international situation has changed.... India could get away lightly due to its limited exposure in the international market," the Commission said in its recent analysis on the impact of global financial crisis on India.
Pointing out that India is not immune from the happenings in the international arena, it said, "If there is a decline in the capital inflow, as a result of the foreign investors' need for liquidity, the stock markets would get affected."
The domestic investors might also face difficulties in raising capital which may hurt the domestic growth, the Commission said without giving any revised economic growth projections for the current fiscal. Similarly, exports would be hit on account of slowing down of international economy.
Noting that experts have projected a wide range of economic growth ranging between 7 per cent to 8.7 per cent for 2008-09, the Commission said, "Under such a situation, relying on one or the other estimate would particularly be risky."
While the Institute of Economic Growth (IEG) has projected a GDP growth of 7 per cent, the Centre for Minoroting Indian Economy (CMIE) has pegged the growth at 8.7 per cent.
The forecast growth rates for 2008-09, it said, has considerably been influenced by the recent crisis in the western economies of the developled world, trigerred mainly by the meltdown in the Wall Street.
