Inflation is set to fall to single digits and India's economy is strong, according to finance minister P Chidambaram.

The Business Standard reported Chidambaram as saying India would put more liquidity into the market if that proves necessary. But he claimed India is not affected by the global financial crisis to the same extent as other countries.  The government is still forecasting growth of eight percent in this year, which is not far off the slightly lower estimates of independent analysts.

The Indian government's view is that the real economy and its financial system walk step in step.

There continue, however, to be worries about the BPO and IT industry in India, which are bound to be affected by a combination of timidity in US spending on outsourcing and enforced consolidation of large financial institutions.

The Business Standard story is here. X