New Delhi, Oct 12 (UNI) Stating that the meltdown of the global economy will certainly impact the Indian economy, the head of the BJP economic think tank Jagdish Shettigar has urged the Centre to adopt an integrated approach keeping the complete picture of the national economy instead of coming out with stock market specific panicky solutions.
He said there will be an immediate impact on the revenues in Information Technology and Tourism industries, in the services sector and exports. The crisis will have impact on IT earnings, employment pattern and salary earnings. All this will have 'spread effect' on consumer durables and real estate sector which in turn will slow down the demand for the construction materials like steel, cement besides the employment generation.
Although the economic fundamentals in terms of Foreign Exechange Reserves is still at a comfortable level of 291 billiion dollars, the country cannot afford to be complacent as these reserves had dwindled from 300 billiion dollars to the present level just in a couple of weeks, the Convenor of the BJP Economic Cell told UNI. This was because of the result of withdrawals from the Foreign Institutional Investors (FIIs) to fulfil the commitments of their parent companies which themselves were short of funds in the US and Europe in the last couple of days, he said.
If the Government tackles the fundamental problems with appropriate fiscal and infrastructure-related policy measures, the stock markets will automatically receive the signals positively and find their own level.
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