Somers warning

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By GARIMA SINGH NEOGY in Delhi
  • Published 24.09.08
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New Delhi, Sept. 24: Ron Somers, president of the US-India Business Council (USIBC), feels the mayhem in the US capital markets will affect investment flow into India.

“There is a credit contraction under way in the US. The impact of this will be clearly felt by the Indian financial system over the next three quarters,” Somers told The Telegraph on the sidelines of a conference jointly organised by the Confederation of Indian Industry and the USIBC.

Contrary to Somers’s views, Union finance minister P. Chidambaram had recently said domestic banks and financial institutions had not been significantly impacted by the US financial crisis.