'US slowdown may be positive for India'

Updated on Feb 06, 2008 03:09 PM IST
Indian economy will attract more global investments benefiting from the US slowdown, Commerce and Industry Minister Kamal Nath said.
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PTI | ByYoshita Singh and Prakash Chawla, New Delhi

Indian economy will attract more global investments benefiting from the US slowdown but the country should not get "psyched" by the bubble burst there, Commerce and Industry Minister Kamal Nath said on Wednesday.

However, on the cautious side a study has been initiated in his Ministry to assess the impact of US slowdown on the Indian economy.

"It will take a fortnight to do an assessment of what it means to India," he told PTI.

Earlier, the US was the most attractive investment destination for funds from the Middle East and Russia. "All this is changing... India is becoming an important parking lot for investments," Nath said, adding gloomier the US outlook, better it was for India from an investment point of view.

"We must ensure we do not get psyched into the sentimentality of the US downturn. It should not psyche India into pessimism or into an economic impact here," Nath said.

He said the fundamentals of the Indian economy remained strong "but a fine calibration is required to ensure that the momentum continues despite the gloomy economic outlook globally".

Nath said the country's GDP would grow by more than nine per cent in 2007-08 when asked whether he shared the optimism of Finance Minister P Chidambaram. "I agree with the Finance Minister. It (GDP growth) could be higher than nine per cent," he said.

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