The Government today said the unfolding of Euro Zone sovereign debt crisis has impacted the country through slowdown in Foreign Institutional Investment inflows and fall in the equity markets.
This information was given in a written reply in the Rajya Sabha by the Finance Minister, Mr Pranab Mukherjee.
He said the crisis had also caused slowdown in the growth of the Index of Industrial Production (IIP), decline in the value of the Rupee and a slowdown in exports in recent months.
The Finance Minister said the economic fundamentals of the country are strong. They include a large domestic demand-driven growth, high saving and investment rate and robust banking system.
This approach to capital account convertibility has prevented surge and reversal of debt, creating capital flows to a significant extent.
