Allaying concerns of global investors over the impact of calibrated tapering of bond purchases by the US Federal Reserve, Finance Minister P Chidambaram has asserted that India is better prepared to face the impact of US Fed tapering and the country is poised to clock 5 percent economic growth in FY14 and over 6 percent in the next financial year. In the previous fiscal, India's economic slowed to a decade low of 5 percent was on account of the global slowdown along with domestic factors such as high inflation and interest rates.
The Federal Reserve has announced trimming of its $85 billion monthly stimulus programme as the US economic indicators have started improving. It is expected that US Fed tapering would impact the growth of emerging economies including India through squeezing global fund allocations to these nations.
By adding further, Chidambaram highlighted that the government has been taking various measures in order to strengthen the country’s fiscal position and to bring the stability in domestic currency and capital markets. The government has set the target to contain the country’s fiscal deficit at 4.8% of GDP in current fiscal.
The Federal Reserve has announced trimming of its $85 billion monthly stimulus programme as the US economic indicators have started improving. It is expected that US Fed tapering would impact the growth of emerging economies including India through squeezing global fund allocations to these nations.
By adding further, Chidambaram highlighted that the government has been taking various measures in order to strengthen the country’s fiscal position and to bring the stability in domestic currency and capital markets. The government has set the target to contain the country’s fiscal deficit at 4.8% of GDP in current fiscal.
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