16 juin: State Bank of India Chairman: Seek to Raise $1 Billion to $2 Bill..
16 juin: GE Eyes Buys In German Mittelstand;Hopes for 1 Deal by End-&a..
16/06/2012 17:05:00

UPDATE: Indian Policy Makers Fret Over Europe's Troubles, Greece's Fate

--Situation in Europe is of particular concern, Indian prime minister says

--Concerns over Greece's fate in the euro zone, Indian finance minister says

--Rupee's depreciation closely linked to euro-zone crisis, finance minister says

(Rewrites first paragraph, incorporates comments from Indian finance minister starting in eight paragraph)

By Khushita Vasant

MUMBAI--Indian policy makers Saturday worried about the frail financial health of the euro zone, particularly expressing anxiety over Greece's fate in the currency bloc a day before the country goes to the polls.

Indian Prime Minister Manmohan Singh said continuing economic problems in the region could hurt India's growth, which has already slowed to a worrisome level.

"Europe accounts for a significant share of the global economy and is also India's major trade and investment partner," Mr. Singh said in a statement before leaving for a Group of 20 summit in Mexico.

G-20 finance ministers and central bankers are meeting in the shadow of a troubled Europe and faltering global economy.

Europe faces a momentous Greek election Sunday. Governments and central banks around the world are bracing themselves with contingency plans for the prospect that Greece could leave the currency union following Sunday's vote.

Greece's election results will come the night before the summit begins, and is expected to weigh on discussions.

"It is our hope that European leaders will take resolute action to resolve the financial problems facing them," Mr. Singh said.

Separately, India's finance minister Pranab Mukherjee said the domestic economy is passing through a difficult time. While the south Asian nation struggles with macro-economic problems of its own, it is equally buffeted by global headwinds.

Mr. Mukherjee said there is trepidation over Greece's fate in the euro zone--its ouster from the bloc could further weigh on risk-sensitive emerging economies like India.

The turmoil has hit the Indian rupee, which depreciated nearly 19% against the U.S. dollar over the past 12 months.

"I am aware of the fact that there has been devaluation and uncertainty over the rupee, which is closely linked with the euro-zone crisis. It is a matter of concern," Mr. Mukherjee said in a speech at an event.

But, India's economic troubles don't end there.

A weakening rupee pushes inflation higher, while other trouble spots--bloated deficits on the budget and current account--further cloud the economic outlook.

Meanwhile, exporters must take advantage of a weakening rupee, even though Europe--a key export market--shows tepid demand, Mr. Mukherjee said. "In the context of the current account deficit and going by slow exports growth, this clearly demands that we must diversify our export destination and also our export basket."

Mr. Mukherjee said he is confident the Reserve Bank of India will keep these in mind and "adjust" its monetary policy.

India's sputtering gross domestic product and factory output growth have led to a clamor for monetary easing.

The central bank meets Monday for its rate-setting meeting.

Write to Khushita Vasant at khushita.vasant@dowjones.com

(END) Dow Jones Newswires

June 16, 2012 11:05 ET (15:05 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

16 juin: State Bank of India Chairman: Seek to Raise $1 Billion to $2 Bill..
16 juin: GE Eyes Buys In German Mittelstand;Hopes for 1 Deal by End-&a..

Envoyer un commentaire

Related debate

  • 1 semaine
  • 1 mois
  • 1 an
24 janv.
VWS
  På den lille ø Rügen ud for Stralsund i Tyskland var der under 2. verdenskrig en del af Hitlers vå..
25
21 janv.
 
Jeg har startet nedenstående debat: http://www.proinvestor.com/index.php?p=debat_1&postid=71068   Ha..
22
24 janv.
VWS
Jeg kan da ikke tale en skid op. Men jeg kan dele et overblik over selskabet som andre ikke har. Men..
17
21 janv.
GEN
I anledning af at Genmab er gået over 400 har jeg lavet et indlæg om forskellige forhold der kan dri..
17
19 janv.
GEN
Aner intet om TA, men Genmab har virket stærk længe - svært at vide helt præcis hvad der forklaringe..
16
21 janv.
ATLA-DKK
Man skal ikke kaste med sten når man selv bor i glashus - tror du ved hvad jeg mener.   Og dit skriv..
15
22 janv.
E:ARCHER
Det var fandme da et flabet svar!   Hvad er du ikke fatter Goodwrench ? læs for helvede indlægget, s..
14
24 janv.
VWS
I stedet for at bruge så mange kræfter på mig syntes jeg at du skulle bruge dem på at lave de kritis..
13
24 janv.
VWS
Donlupo - du forudsætter altså (uden videre argumentation) at Vestas markedsandel vil være faldende ..
13
24 janv.
VWS
En ny rapport vurdere at vi skal fra dagens globalt investerede aktivitet gå fra 364.9 GW i 2014 til..
13

Actualité la plus lue

  • 24 heures
  • 48 heures
  • 1 semaine

Droit d'auteur Euroinvestor A/S 2015   Mentions légales et conditions d'utilisation
Information sur les cours fournies par Interactive Data.
Les données sont différées de 15 à 20 minutes selon les accords avec les différentes bourses internationales.
 
dimanche 25 janvier 2015 23:15:44
(UTC+01:00) Brussels, Copenhagen, Madrid, Paris
Version: LiveBranchBuild_20150121.1 - EUROWEB3 - 2015-01-25 23:15:44 - 2015-01-25 23:15:44 - 4 - Website: OKAY