Planning Commission deputy chairman Montek Singh Ahluwalia on Monday said the Indian economy was primarily driven by domestic factors and markets here would stabilise in the short-run.
There was a need to closely monitor the situation, he said, adding, any global financial instability would have some impact on the domestic economy.
“The high growth of the Indian economy is largely driven by internal factors. I feel the market will stabilise in the short-run. I don’t expect to see a big negative impact but we have to watch the situation,” Ahluwalia was quoted as saying by the Press Trust of India.
Stressing the need for a globally co-ordinated action to address the current situation, Ahluwalia said that Standard and Poor’s downgrading of US sovereign ratings was on expected lines.