PARIS (AFP) — The Indian economy and financial system are sound and should not suffer from the financial crisis roiling global markets, Indian Commerce Minister Kamal Nath said Tuesday.
Nath said all countries however had an obligation to help restore confidence in the global financial system and India would play its part with France and the European Union in doing so.
"There is an atmosphere of gloom in the world economy, in the European economy ... but not in the Indian economy," Nath said.
India could not "be insulated in the long term from such a crisis," he said, adding: "We need today a new financial order where the (rules for the) banks, financial institutions are common."
He said Indian banks were not exposed to the collapsed US subprime home loan market at the heart of the crisis and so "India's financial system is not going to be hurt."
Prime Minister Manhoman Singh said confidence had to be restored to the markets, noting: "It is the obligation of all the governments (..) to do so collectively."
Singh, leading his delegation to an EU-India summit, said "the prospects for India seem very good ... (offering) a stable platform for businesses and investors."
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