U.S. stimulus withdrawal will not make much difference

Finance Minister P Chidambaram has said that the U.S. central bank, the Federal Reserve has no need to be afraid to move . Market says that the changed circumstances in the Indian economy will benefit . Return package means that U.S. economic conditions are improving.



Fed Reserve on Wednesday announced the withdrawal of fiscal stimulus . Under which it is now worth $ 75 billion each month to buy the securities market . Yet he opted market provided a cash of $ 85 billion every month . He has cut $ 10 billion in liquidity , ie . India feared that returns are likely to be better investments out of the country by foreign institutional investors in the U.S. will . Exit their investments in Indian rupees and was raised fears of weakness .
The U.S. central bank announced Thursday morning after the RBI Governor , Finance Minister P Chidambaram spoke to Raghuram Rajan . He said that the U.S. has few incentives withdrawn . Fed Reserve will further continue investing in securities . Anyway India in May, 2013, more than ready to face this situation today . Finance Minister 's statement helped to recover the financial markets .
Meanwhile , Bank of America Merrill Lynch report also believed that India 's decision to the Federal Reserve will remain positive . This augurs well for the Indian exporters .