India's exports and foreign direct investment (FDI) inflows have been hurt by the global slowdown, the finance minister told lawmakers on Thursday. Pranab Mukherjee also said the country cannot afford to have near double-digit inflation. He, however, said recent readings of food inflation was encouraging, citing the latest weekly food inflation rate, which fell for a fifth straight week.
Food inflation sharply eased to 6.60 percent in the year to November 26, to its lowest in nearly three-and-a-half years, government data on Thursday showed, from an annual 8.00 percent in the previous week. India's October exports growth slowed to 10.8 percent to $19.9 billion, from high double-digit growth in the early months of the current fiscal year that ends in March 2012. Mukherjee also said the general economic situation was not encouraging and the country cannot remain isolated from the euro zone sovereign debt crisis.
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