Amid most of the countries round the globe affected by slow down and struggling to come out of it, Reserve Bank Deputy Governor Anand Sinha throws a respite by pointing out that, India is little affected by the global financial crisis and can come out of it faster than China as it is a domestic consumption driven economy, so it is less affected by export sector performance.
He also urged for necessary united actions in containing inflation rate to ensure growth, thereby to get out of the slow down effects. Albeit, RBI assured that it has focused policy measures to control inflation rate, retail inflation in India stood up at 10.03%. He noted that financial crisis has affected trade channel, though India is not export dependent but exports has suffered due to this.
He cautioned that the pessimistic sentiments of financial market also trimmed growth in equity trade and foreign exchange rate. He stated increasing food prices due to supply constraint and hike in oil prices as reason for rising inflation rate.
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