Appropriate measures in place over financial crisis: Mukherjee

Sridhar Krishnawami

Washington, Oct 11 (PTI) India Saturday said it was too
early to figure out what would be the "adverse impact" of the
U.S. financial turmoil on its economy, but insisted that it
had already put in place "appropriate measures" addressing the
crisis.

"We are fully aware of the developments that have taken
place and presently the Cabinet in its meeting has addressed
the issue. As the global economics are closely linked, it
might have impact on every economy," External Affairs Minister
Pranab Mukherjee told a press conference here.

Keeping in view these developments, "appropriate measures"
have already been taken by the Reserve Bank of India (R.B.I.)
and Securities and Exchange Board of India (S.E.B.I.), he
said, adding that even Finance Minister P. Chidambaram issued
a statement outlining measures which have been taken.

Asked about the lessons of the financial crisis to India,
he said "this is an event for which we have to respond in an
appropriate manner."

"If you have noticed, the economic policies of India have
undergone changes with the changing world situation and
keeping pace with it. It is not static and it has an inherent
dynamism in it," said Mukherjee, who was here to ink the
historic 123 Agreement to operationalise Indo-U.S. nuclear
deal.

Noting that India-U.S. economic relations were expanding
very fast, the minister said that America "as an individual
country is the single largest trading partner... we have the
largest number of technical collaboration with U.S. companies.

"Keeping that in view we have to make a hard assessment of
what adverse impact, if at all, would have of this
development," he said, adding "it is too early to make any
comment on it."

In a different context, Mukherjee spoke about the
expanding relationship between India and the United States to
include several other areas.

"... we are already expanding our relations in many
areas, not merely in civil nuclear cooperation -- this is the
first -- but in defence, in agriculture, in education, in
science and technology.

"In all areas of major economic activities we are having
expanding cooperation with U.S.A.; and I have no doubt that it
will be possible to expand it further as a result of this
agreement," he said winding up his visit to Washington.