INDIAN ECONOMY: Pranab sees positive side as oil prices fall!

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PTI / The Hindu / NEW DELHI, August 9, 2011.

Union Finance Minister Pranab Mukherjee has said that India’s economic fundamentals were strong and capable of meeting any challenge posed by the downgrade of the U.S. economy. File photo - The Hindu.

With all eyes on the global situation, Finance Minister Pranab Mukherjee on Tuesday said India’s macroeconomy was moving in a positive direction and hoped international commodity prices would decline, helping the government tame inflation and cut subsidies.

Mr. Mukherjee maintained that India’s economic fundamentals were strong and capable of meeting any challenge posed by the downgrade of the U.S. economy and the crisis in some Eurozone nations.

“I would like to emphasise that some of the investment banks have upgraded India to market weight, that means the basic fundamentals are strong and macroeconomy recovery is moving toward a positive direction,” he told reporters, referring to Monday’s Goldman Sachs report.

The Minister said the U.S. downgrade has created some problems for India, but the country could handle any situation arising out of international developments.

“The challenge is there, but we have the capabilities of facing these challenges,” Mr. Mukherjee said. “Collectively, with the efforts of all concerned, particularly with the cooperation of the RBI, we will be able to face the challenges,” he added.

Till the Indian Oil Prices too are reduced in tune with the falling Global Oil Prices, no positive impact on the Indian Commodities would happen and till such time no hope for Indian Economy!

Full Story at,

http://www.thehindu.com/business/Economy/article2339674.ece?homepage=true