New Delhi: India Inc Thursday said the rate hike by the US Federal Reserve will not have a significant impact on India even though it may put pressure on emerging market currencies, including the rupee.
"The Fed's decision to raise the US interest rate by 0.25 points is as anticipated. We do not expect any major impact on India. Our economic fundamentals remain strong with improved growth and twin deficits largely under control," Ficci Secretary General A Didar Singh said.
"The rate hike also signals a stronger US economy, which augurs well for demand pick-up globally and hence, for Indian exports of goods and services."
The Federal Reserve last night decided to hike rates by 25 basis points after keeping them at near zero levels for a prolonged period -- its first rate increase since 2006.
"There can be some volatility in the currency rates of the emerging markets, including India. So, we need to remain cautious especially about the rupee further weakening and its possible impact on domestic inflation," Assocham Secretary General D S Rawat said.
Engineering exporters body EEPC India Chairman T S Bhasin said: "While the rupee may weaken, what is worrying for Indian exporters is a possible sharper erosion in currencies of competing economies like Indonesia, the Philippines, Brazil, China, and Russia, potentially making their exports gain an edge."
