Have seen much worse in the past, says Principal Eco Adviser Sanjeev Sanyal on market crash

On March 13, the Indian stock market hit the lower circuit for the first time in 12 years after 2008 crisis, halting trading for 45 minutes.

India is not insulated from the turmoil global financial markets, Principal Economic Adviser Sanjeev Sanyal told CNBC-TV18.

On March 13, the Indian stock market hit the lower circuit for the first time in 12 years after 2008 crisis, halting trading for 45 minutes.

"Have seen much worse on trading floors in the past," Sanyal told the news channel.

On inflation, he sees inflation falling off sharply in the next two readings. Retail inflation, measured as Consumer Price Index (CPI), came in at 6.58 percent in February.

Speaking about the coronavirus outbreak, Sanyal said first the medical angle needs to be taken care of before looking at the impact on the economy and markets. "India has monetary space to tackle the economic impact of coronavirus," he added.

Finance Minister Nirmala Sitharaman has held a meeting with the industry to address supply shortfalls, Sanyal said. The outbreak of coronavirus, or COVID-19, had disrupted the supply chain to some Indian industries since it hurt imports from China to India.

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