A senior IMF official, on Tuesday, said given the structure of its economy, its exports and financial markets, India is unlikely to be affected by the global financial crisis.

“In our view, there are a few things going on in India that will likely insulate it from the worst of effects that would be felt in other countries,” IMF Senior Adviser & Mission Chief for India Kalpana Kochar said.

“Domestic demand in India is very strong, where you still have investments that is growing very strongly. Consumption, especially of durable, has come off a little bit as interest rate has increased from last year and are beginning to bite,” Ms Kochar said in a tele-conference. “But we do think that overall domestic demand growth is strong and that is going to keep growth going,” she added.

“If in fact US companies are looking to cut costs, it could mean they outsource more. So, India could benefit from that,”  she said. “Overall in the spectrum of countries that are likely to be affected by this crisis, India is probably a bit further down,” she added.