Wells Fargo Investment Institute looking at a reasonable economic growth of 7% for India, Gary Schlossberg, global strategist, told CNBC-TV18.

He further said that India is seeing rapid economic and earnings growth. However, it is vulnerable to high oil prices. “It is similar to the US in some ways; strong earnings growth and the central bank unlike the US Federal Reserve, is not making any move to raise interest rates; Federal Reserve hasn’t either. We expect them to on March 16, but nothing is done so far and the Reserve Bank there surprise the market by standing pat,” Schlossberg said.

Talking about Russia-Ukraine, he said that it will be a nagging issue going ahead. “You can sketch out a fairly typical scenario of Russians invading Ukraine. We have the knee jerk reaction in favouring safe haven assets; wheat, grains those prices would spike because of the importance of that area to the global markets,” said Schlossberg.

Also Read: Ukraine crisis: No logical reason to invade; west needs to explain hysteria, says Russian Embassy

He believes, over time, global markets will return to fundamentals. According to him, there is ample liquidity in global markets and expects succession of rate hikes from the US Federal Reserve.

“The US economy is more interest-sensitive; we could see areas like housing and big-ticket spending being affected even by a modest rate increase,” said Schlossberg.

For the entire interview, watch the video

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