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U.S. slowdown will not affect economy much: Manmohan

Special Correspondent

‘Confident of growth momentum’

NEW DELHI: Prime Minister Manmohan Singh on Friday said the country’s economic fundamentals were strong enough not to be affected by a likely slowdown in the U.S.

At a joint press conference with French President Nicolas Sarkozy here, Dr. Singh said: “I am confident we can sustain our growth momentum at nine and 9.5 per annum despite [the] international situation.”

Inter-dependent

At the same time, in the globalised world, developing economies could get affected. “It is an inter-dependent world. International financial crisis can affect economies of developing countries like India,” he said.

“We hope the U.S. will take effective and credible steps to check the sub-prime crisis,” Dr. Singh said, even as he envisaged little impact on India. “We won’t be affected much as the foundation of the Indian economy is sound.”

Bank fraud

To questions on the impact of the $7.15-billion fraud at France’s second biggest bank Societe Generale, Mr. Sarkozy said it was an internal fraud and would in no way affect the “solidity and reliability” of the country’s strong banking system. “We will not be affected. No way it can affect the stability of the French banking system.”

On the turmoil in the global financial markets, he said: “The crisis is radiating out of the U.S. sub-prime issue, so there is need for more transparency and less regulation ... the situation can’t go on like this.”

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