No Capital Control Measures On Anvil, Says Chidambaram
Chidambaram said: "We are in better health than many other countries of the world ... We expect growth will pick up in Q2 to Q4."
To restrict outflows of foreign currency, the RBI has announced stern measures, including curbs on Indian firms investing abroad and outward remittances by resident Indians.
Chidambaram hoped that capital inflows in due course will correct the position of rupee.
"There is still volatility in the currency market that is unacceptable. Stability must return," he said.
The Minister also said that government will make all efforts to contain fiscal deficit at 4.8 percent and CAD at 3.7 percent of GDP or $70 billion this financial year.
He said the CAD could be even lower than $70 billion.
The Finance Minister further said that global slowdown and domestic factors, which have been there for 2-3 years, pose challenges to the economy.
The targets of the Fiscal Responsibility and Budge Management were breached and inflation crossed 10 percent.
"And now .... We are trying to retrieve the ground that we have conceded. We have retrieved a significant part of the ground, but still work remains to be done”.
"WPI inflation is being contained... We have brought fiscal deficit down. We are paying a price for global slowdown as well as domestic factors which are indicated," he said.
When asked if the government could come out with sovereign bond issue, Chidambaram said all options are on the table.
"Which option we will exercise at what time is a matter of judgement by the policy maker. I think it completely wrong to say an option is off the table," he added.
Read More:
