US crisis to impact world: Pranab Mukherjee

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Summary'US economy has its influence over world economy as it is the most powerful economy of the world.'

President Pranab Mukherjee today said developments in the US impact the whole world and India's economic recovery is dependent on the external environment.

Although it was for the Prime Minister Manmohan Singh and Finance Minister P Chidambaram to respond to the US shutdown, he said, "I, in general terms, can say that we would like to have economic recovery faster but surely, in a globalised economy as ours, it does not depend only on our efforts.

"The external environment should also be considered".

Mukherjee was speaking to reporters aboard the special aircraft on way from Belgium to Turkey.

Answering questions on the impact of the present US crisis on India, the President said, "Generally US economy has its influence over world economy as it is the most powerful economy of the world. But on this issue the proper response should come from the Prime Minister and the Finance Minister and not from me as to how they are handling.

"What is their assessment of the situation? How far they consider the gravity of the situation. It is for the PM and the FM to respond".

Starting this month, the US government closed non-essential operations after Congress failed to strike a deal on spending and budget due to differences over 'Obamacare', the signature healthcare programme of President Barack Obama. Republicans and Democrats are blaming each other for the impasse.

The US shutdown has left nearly 800,000 employees on unpaid leave and closed national parks, tourist sites, official websites, office buildings, and more establishment and the prolonged stalemate is likely to have repercussions around the globe.

It may also have implications for India which is trying to arrest declining growth which had slipped to decade's low of 5 per cent in 2012-13 and recorded a low of 4.4 per cent in the first quarter of the current fiscal.

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