Finance Minister Arun Jaitley said many currencies have virtually collapsed due to low commodity prices.
Kolkata: With China growth concerns spooking world financial markets, Finance Minister Arun Jaitley on Friday said domestic institutions needed to be strong and resilient to withstand global headwinds.
"We are in the world of volatility. Our domestic institutions will have to be strong," Mr Jaitley said here.
He, however, did not dwell further on how the same would be done or achieved and whether there will be any government intervention to tide over the ongoing global crisis.
Billionaire George Soros has compared the current global crisis to the 2008 meltdown.
Asian markets were volatile as investors were panicked by China devalued its currency for the second time this year amid growing fears that the global economy could be teetering.
Mr Jaitley pointed that the rupee has fared well against all major currencies until it eased a little after the Chinese (duet devaluation) shock.
"Of late due to low commodity prices many currencies have virtually collapsed....Russian, Brazil devalued a lot and as Chinese have second round of problem, we are in the world of volatility," Mr Jaitley said.
"Compared to that rupee has improved with regard to most of the currencies of the world. It also withstood against US Dollar but after the Chinese shock it dipped little."
Mr Jaitley was replying to a question on currencies at a lecture on democracy in a city's premier institution.
On Indian rupee, he said, "Strength of Rupee depends on various market process, it also depends how many Dollar getting into India.. If lot comes our Rupee becomes stronger."
"We have to concentrate on trade (external) and the challenge is global trade is shrinking in terms of value."
He hoped currencies would find their levels when the world gets out of these issues.