FM Arun Jaitley says impact of global turbulence on India temporary

Finance Minister Arun Jaitley on Monday said the Indian financial markets are in turmoil as a result of external factors and they should soon settle down. He spoke after a huge sell-off in Chinese stocks sent the Indian rupee to its lowest level since September 2013. The BSE Sensex crashed 5.94 per cent, or 1,624.51 points, to 25,741.56, amid fears of a China-led global economic slowdown.

Here's what the finance minister had to say:

ON CURRENT MARKET AND RUPEE MOVEMENT: "There has been for the last few days a great amount of turbulence which was being caused in the global markets. Obviously that turbulence has had impact on Indian market itself. The factors responsible for this are entirely external. There is not a single domestic factor in India which has either contributed to it or added to it. These are external factors. I have not the least doubt that this turbulence is transient and temporary in nature. The markets will settle down"

ON YUAN DEVALUATION: "The government and the RBI are closely watching the situation... Our response at this stage is very clear. We have to strengthen our own economy."

ON ECONOMY: "Our fiscal deficit figures are under control. Inflation is very much under control. We stand by the growth projections which we made at the beginning of the year and indirect taxation data actually supplements the idea of those projections." Jaitley said developments like the possibility of US Federal Reserve cutting rates, crisis in Europe and devaluation of the Chinese currency will have implications on India.

ON THE ROAD AHEAD: Observing that the indirect tax collections improved by 14.6 per cent in April-July after discounting for the fresh revenue initiatives, Jaitley said the Indian economy is in a revival phase though challenges exist as far as global developments are concerned. "We have embarked upon a path for one year and and a quarter that even in the midst of global slowdown India should emerge as one of the fastest growing economy in the world."

(With inputs from agencies)