8216;No major impact of US crisis on India8217;

Ruling out a recession in the short term,he said a slowdown in global economic growth was for sure in the mid-to medium-term.

8220;While the 2008 crisis was a revelation for everyone,the present crisis arising from the US downgrade by Samp;P and the lingering debt crisis in the Eurozone economies,is a realisation of the fact that the fundamental problems are still not rectified,8221; Reddy told to a news agency over the phone from Hyderabad.

However,he cautioned that it was too early to assess the development as the situation is too fluid now. Projecting an economic expansion of around 8 per cent for the domestic economy,with a downward bias,he said to achieve that growth rate,our policy focus has to be fine-tuned at the earliest.

Whether there will be a flight of capital if the US economy slips into another recession in the wake of the last week8217;s downgrade-from AAA to AA,Reddy said,8221;If there is excess liquidity in the US system,then we have a fair chance of getting more capital inflows. But if a serious slowdown kicks in,there could be volatility in the fund inflows8221;.