New Delhi, Nov. 23 (ANI): Finance Minister Pranab Mukherjee on Wednesday said that the Euro zone economic crisis was causing volatility in the Indian stock markets.
He also said that India's options against the crisis were limited.
"Unless the Euro zone stabilizes, there is difficulty for Indian markets and the policy options are limited," he told the media here.
Mukherjee further said that the withdrawal of money by foreign institutional investors (FII) had triggered a fall in markets.
"The market has crashed because of the continuous withdrawal of FII, and there is still uncertainty prevailing in the Euro zone. Rupee decoration has also had an adverse impact, so these cumulative effects are there," he said.
Food inflation has been stubbornly high over the last few years in India, in spite of record foodgrain production and robust buffer stocks.
The Reserve Bank of India (RBI) has already raised rates 13 times since early March 2010 to clamp down on stubborn inflation, largely driven by high food prices.
Inflation has remained over nine percent since December 2010. The headline inflation measured on Wholesale Price Index (WPI) was 9.7 percent in October, while the rate of price in food segment for the week ended November 05 was 10.6 percent. (ANI)