The financial meltdown in the US may not not have had its impact in India so far but there is concern at the highest levels in the government about the possibility of its fall-out sometime later.
Sources say though Prime Minister Manmohan Singh, an economist himself, has expressed confidence in the resilience of the Indian economy, he is concerned over the situation arising out of the collapse of international reputed financial institutions on the Wall Street.
A section in the party also feels it may be wise to have early elections before the financial crisis has its impact in India and politically the environment goes against the government.
This section cites the remarks of Planning Commission deputy chairman Montek Singh Ahluwalia that it would be foolish to think that India would not not face any economic uncertainties in the future if the turmoil in the financial markets continued for long.
The prime minister, now on a trip to the US and France and returning mid-week, would have had the benefit of his talks with world leaders and some economists by the time he is back.
However, a redeeming feature is that the assessment in the government is that inflation would return to single digit in the next few months providing a breather to the government.
Also, assembly elections are due in states including in the BJP-ruled Madhya Pradesh, Rajasthan and Chhatisgarh and Congress-ruled Delhi and Mizoram in the next couple of months.
A decision has to be taken on Jammu and Kashmir also with Election Commission appearing to be keen on holding the democratic exercise in the troubled state.
