India well prepared to deal with US rate hike: FinMin

Finance Ministry today said India is well prepared to deal with the impact of the US Federal Reserve interest rate hike and the end of uncertainties will actually help policy makers in emerging economies.

"US Fed rate hike and reference to gradualism are on expected lines. India well prepared," Economic Affairs Secretary Shaktikanta Das tweeted.

The US Fed's "accommodative" monetary stance is good for emerging market economies, and India does not expect to see large foreign selling from the country, Das told reporters later. 

"We are well prepared to deal with such external development," he said, adding that "(The) country is benefiting from low crude prices and overall macro-economic stability is also there."

The US Federal Reserve last night hiked interest rates by 0.25%. This is the first hike in about a decade, signaling a recovery in the US economy.

"End of uncertainty and accommodative outlook for future will help policy makers in emerging economies," Das said.

He added that the Fed's confidence on recovery is good news for India's exports, especially for the IT sector.

Reacting "I think we are relatively well cushioned. Volatility in Indian markets should be quite minimal," Chief economic advisor Arvind Subramanian told reporters.

Meanwhile, the rupee today opened 13 paise higher at 66.60 against the US dollar.

Besides, the 30-share BSE Sensex rose 131.43 points at 25,625.80 in opening trade.