Indian economy will attract more global investments benefiting from US slowdown but the country should not get “psyched” by the bubble burst there, Commerce & Industry Minister Kamal Nath said on Wednesday.

Incidentally, the commerce ministry has initiated a study to assess the impact of US slowdown on the Indian economy. “It will take a fortnight to do an assessment of what it means to India,” he told PTI.

Earlier, the US was the most attractive investment destination for funds from Middle East and Russia. “All this is changing... India is becoming an important parking lot for investments,” he claimed adding gloomier the US outlook, better it was for India from an investment point of view.

“We must ensure we do not get psyched into the sentimentality of the US downturn. It should not psyche India into pessimism or into an economic impact here,” he said observing “a fine calibration is required to ensure the country’s growth momentum continues despite the gloomy economic outlook globally.”

While putting up a brave face and stating that US economic troubles would not creep into Indian economic outlook, he, however, agreed that the country was engaged with world’s largest economy which faces more threats in the weeks to come.

Further collapse

“India is not coupled with the US economy. It is not dependent but engaged with the US economy,” he averred adding that trade destination has also been changing from the west to the east. Mr Kamal Nath said the US, which had become high priest of best business practices, could face more troubles in the near future.

Mr Kamal Nath said he foresaw further collapse of the US credit system. “I am foreseeing further collapse in credit cards, car loans, student loans in the US in the next couple of months. All bubbles have not burst as yet, more bubbles are there to burst. There are signs that there is likelihood of even more corrections being required in US economy,” he opined.