India is also affected by the global financial melt down, but some strong fundamentals and a pro-active monetary policy management will possibly allow India to ride this global financial crisis, a World Bank study says.

Some steps like prudent foreign debt management, high savings rate, solid financial sector health, and a pro-active monetary policy management that will likely allow India to ride the crisis without destabilising the financial sector.

The reduction in global petroleum and food prices observed over the past few months provides a silver lining for South Asia in an otherwise difficult external environment. Yet this silver lining is now heavily clouded by the emerging global financial crisis that poses tremendous downside risks to South Asia.

 News Source: MSN India