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US, euro area headed for recession, but India will remain untouched: S&P

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US, euro area headed for recession, but India will remain untouched: S&P

Mumbai, Sep 21 (PTI) Global rating agency S&P on Tuesday said that the US and the euro zone may be heading towards a slowdown but it is unlikely to affect India. He said that this is because India’s economy is not very much linked to the global economy.

Paul F Grunewald, Chief Economist and Managing Director, S&P Global, told reporters here, “The Indian economy is very much isolated from the global economy due to its massive domestic demand, although India is a net importer of energy. On the one hand you have sufficient reserves of foreign exchange, your companies have also been successful in maintaining good bookkeeping.

Grunewald said that India was never fully connected to the global economy and therefore is relatively independent of global markets. He said that if there is a recession in the US and Europe, a lot will also depend on the flow of global funds.

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