Tsunami not to retard nation's economic growth: RBI
Thursday, January 6 2005 16:32 Hrs (IST) - World Time - 
Pune:
Reserve Bank of India (RBI) today (Jan 6, 2005) said the December 26 tsunami will not have a much impact on the economic growth and prices but there may be reduction in exports to the tune of $ 200 million in the current financial year.
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Tsunami has not caused significant physical disruption in the economic activity nor much impact on exports and imports, RBI Governor Y V Reddy told reporters on the sidelines of a function at National Institute of Bank Management in Pune.
The possible reduction in exports due to the disaster was expected at $ 200 million, Reddy said.
Asked about the impact of rise in sugar and cement prices in the wake of the disaster, Reddy said there would not be much impact on prices (inflation).
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On the impact of tsunami and downturn in stock market on foreign exchange market, the RBI governor said the central bank was looking at the spillover effect but any changes are due to global factors.
The insurance sector would be impacted due to claims, he said.
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RBI does not expect increase in the borrowings due to disaster and if required the Government would be able to raise any additional resources for relief without strain on the system, he added.
PTI
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