The US Government shutdown is unlikely to have any major impact on the Indian economy, Economic Affairs Secretary Arvind Mayaram said here today.

After a gap of 17 years, the US Government was shut today, raising concerns over its impact on the world's largest economy and also the emerging markets like India.

"We are quite hopeful that the shutdown in US Government will not impact the US economy and there will be no spillover on global economy," Mayaram told reporters here.

Reining in CAD

The Finance Ministry is looking at a current account deficit (CAD) of $70 billion this fiscal although analysts expect a lower number on this front.

"We will fully and safely finance this CAD of $70 billion without dipping into our reserves," Mayaram said.

For the time-being, the Finance Ministry has decided to stick with its earlier forecast of CAD being around $70 billion. The Government is betting big on foreign inflows to safely finance CAD.

Economic growth

Mayaram also said that he expects India's economic growth in the second quarter to be higher than the first quarter.

As for gold, he said that gold imports will be restricted at 800 tonnes. "It is not in our national interest to continue to import gold in such large quantum.''

(This article was published on October 1, 2013)
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