New Delhi, Sep 18 (IANS): The US Federal Reserve decision not to raise interest rates was a "non-event", NITI Aayog vice chairman Arvind Panagariya said on Friday, adding that such hikes will be gradual whenever they begin.

"It is basically a non-event. I have said this before, even if the Fed begins to raise, it will be a very gradual rise," Panagariya told reporters on the sidelines of an event here organised by FICCI's International Chamber of Commerce.

Saying that the markets were anticipating a US interest rate hike, he said this time it has been unlike in 2013, when there was a fairly large reaction on a similar expectation from the US central bank.

"That time (2013) no change did happen, there was some perception that some change might happen. And that had generated a fairly large reaction. I don't expect that (this time)," he said.

The US Federal Reserve on Thursday kept interest rates unchanged in the face of jittery financial markets and a global slowdown.

Relieved by the status quo in US interest rates, Indian share markets opened higher on Friday, and flared up further in tune with most Asian peers as investors saw momentary respite from a potential shift of global funds away from emerging economies.