No need to press panic button: Mukherjee on Satyam

Seeking to allay any fears among foreign investors due to the Satyam fraud, India on Tuesday said appropriate steps are being taken to address the issue and there was "no need to press the panic button".

Britain said India's economy is quite strong and "one bad apple" does not mean the "whole barrel is bad".

British Foreign Minister David Miliband expressed confidence that Indian authorities will deal with the Satyam case "very clearly and very appropriately" as he underlined the need for implementation of Indian laws of corporate governance in a "hard-headed and clear way".

Seeking to allay any apprehensions arising out of the Satyam scam, External Affairs Minister Pranab Mukherjee said "In respect of the recent developments, appropriate steps will be taken. One need not hit the panic button."

Mukherjee, while addressing a joint press conference with Miliband after their talks, was responding when asked whether the Satyam issue could have an adverse impact on the Indian IT sector in terms of investor confidence.

He underlined that the Indian economy's "basic fundamentals are strong" because of which it has been possible to maintain a "reasonable growth" despite the meltdown.

He said India's growth is expected to be 7-7.5 per cent this year despite the global meltdown, mainly because of high rate of domestic savings and high rate of interests.

"37 per cent is the rate of investment and 35 per cent is savings and marginal (money) is coming from external sources," Mukherjee said, adding "We have been able to overcome the impact of the meltdown."