Stating that India remained largely insulated from the global turbulence caused by US sub-prime mortgage crisis, Mr Chidambaram said, India, however, cannot afford shocks and major turbulence in its capital markets. “This is main reason why we are so cautious, while, we have in place policies to open up our markets,”  he observed.

Domestic policies
Meanwhile, Mr Chidambaram, also said, the Centre would not hesitate in making “appropriate” adjustments in its domestic policies to contain inflation. “All over the world there is now growing concern for inflation,” he said at a CII function attended by the business delegation from Iceland.On efforts to improve its infrastructural facilities he said the country needs investment of $475 billion in infrastructure in the next five years to support 9 per cent growth. Of this, $120 -130 billion of the investment requirement would come from foreign investment, he said.