The
stock market melt down had once again forced the
Indian Finance Minister to come out and make a statement to soothe the nerves of
Indian Stock market investors.I am reproducing below something the FM had said in March 2008
“Growth is imperative. Inclusive growth is our goal and we will make every effort to ensure that growth becomes more inclusive.
I mentioned the financial health of the country. World over, there are well-accepted parameters to measure financial health, not only in economic terms but also in terms of human development indicators. Some human development indicators have improved while some have not. Infant mortality rate and maternal mortality rate have not improved. But school enrollment, retention in school and life expectancy has improved. In many diseases, there has been significant improvement. We have still a long way to go in human development indicators.
The
subprime mortgage market crisis did not directly affect us. Except for one private sector bank, which has made a disclosure, none of our public sector banks have any exposure to the
subprime mortgage market.When the crisis moved from the
subprime mortgage market to the housing market and from the housing market to the
credit market, there is some impact upon India. There is an impact in terms of the credit flows and financial flows. But all our assessment, as well as the assessment of many impartial observers, indicates that the impact upon India will be a second order impact not a first order impact.”
Chidambaram said that
Indian stock markets have been moderately impacted by the US
subprime crisis. This was while he was debating the Budget in the Rajya Sabha.
Only time will tell if the
Indian stock markets and the economy will bounce back from the current turmoil without hurting the
investors too much.
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