Slowdown in US not to impact India much: FM

A slowdown in the US economy will have an impact on India, Finance Minister P Chidambaram today said at the partnership summit organised by CII in the capital today.

However, the finance minister added the impact will not be drastic unless US were to cut its interest rates. A cutting of interest rates would lead to a differential between the Indian and the US interest rates. This will have consequences on capital flow, faster appreciation of rupee, etc.

Chidambaram said a slight slowdown will not create much impact as Indian exports to US are not huge. "India exports equally to Europe and eastern countries like China and Japan. We are not so dependent on the US", he said.