No adverse impact on flow of capital to India: Ahluwalia
India is concerned about protectionism in the global financial markets in the guise of regulation but does not see any adverse impact on the inflow of overseas funds, Planning Commission Deputy Chairman Montek Singh Ahluwalia said on Monday.business Updated: Sep 14, 2009 19:43 IST
India is concerned about protectionism in the global financial markets in the guise of regulation but does not see any adverse impact on the inflow of overseas funds, Planning Commission Deputy Chairman Montek Singh Ahluwalia said on Monday.
"We are concerned that in the guise of improving regulations, they should not be putting in place rules that end up discriminating against developing nations," Ahluwalia said on the margins of a conference on the upcoming G20 Summit in Pittsburgh.
"But I think capital flows into India won't be adversely affected. In fact, when the system stabilises, people will recognise that India remains among the fastest-growing countries in the developing world," he said.
"I don't think we will have difficulty in getting the amount of capital we want. It may not go to the level we had in 2007. But that kind of flow was actually more than we needed."
The event, titled "International Cooperation in Times of Global Crisis: Views from G20 countries" - was organised by the Indian Council for Research on International Economic Relations (ICRIER).
Ahluwalia, who leaves for Pittsburgh later this week for official-level talks before the summit Sep 24-25, will also be Prime Minister Manmohan Singh's "sherpa" or his key aide there.
According to the Planning Commission deputy chairman, the Indian economy will attain a fair amount of stability in the next six months, having predicted a 6.3 per cent growth for the current fiscal if there are no further shocks like the one because of drought.
"In the next six months, you will see evidence of stabilisation."
He said there was a realisation now that the worst was finally over in the global economy, unlike what happened during the Great Depression eight decades ago when economies contracted 40 per cent in six months.
The real issue, Ahluwalia said, was how fast the contagion of global meltdown gets overturned, as the worst fears following the collapse of Lehman Brothers exactly a year ago and the financial crisis were thankfully belied.