New Delhi, Feb 28 (UNI) The Economic Survey commends the government's gradual and cautious approach to opening up of the financial sector reforms, saying that this provided immunity from shocks like the US sub-prime crisis.
The Survey, tabled by Finance Minister Palaniappan Chidanbaram in Parliament today, says that India took adequate safegurads to ensure stability of the financial sector.
The Survey states that the country remained relatively insulated from the US sub-prime crisis as the bank and financial institutions in India do not have marked exposure to the sub-prime and related assets in matured markets.
The sub-prime mortgage crisis, one of the major financial crisis of the new millennium, originated in the United States (US) housing market and subsequently spread to some other parts of the world.
The general softening of international rates during the last few years, coupled with relatively easy liquidity conditions across the world, provided for increased risk appetite of investors leading to the sub-prime market.
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