This Article is From Jul 31, 2013

Chidambaram says need to stabilise rupee but have to support growth: highlights

Chidambaram says need to stabilise rupee but have to support growth: highlights
New Delhi:

Finance Minister P Chidambaram today addressed a press conference amidst concerns surrounding the free-falling rupee which has come dangerously close to hitting the all-time low of 61.21.

Here are the highlights:

  • As far as agriculture is concerned so far it has been very good
  • It is 16 per cent more than the normal average
  • Confident that services sector will post as good a growth as last year if not better
  • Demand for credit is sluggish in big industries
  • 157 projects cleared by the Cabinet Committee on Economic Affairs (CCEA) worth1,60,900 crore
  • Price of credit is indeed high but it is not so dauntingly high that it should deter investments
  • Ample funds are available with banks
  • Last tear concern of fiscal deficit was upper most on everyone's mind
  • We have already financed current account deficit by $88 billion
  • We will be able to fully finance current account deficit this year too
  • We hope to contain gold imports at a level well below last year and save considerable amount of foreign exchange which will have a positive impact on current account deficit
  • Government is actively considering liberalising FDI
  • Longer term external commercial borrowings (ECBs) to be liberalised in consultaion with RBI--to raise more money on a sustainable basis
  • We must revive investment and industry must play its part
  • We will ask some public sector companies to raise funds abroad
  • When the global economy is a challenge, Indian economy also faces a challenge
  • In the last two weeks RBI in consultation with the government has taken a number of measures to support the rupee
  • I think we need to stabilise the rupee and going forward we have to support growth
  • The rupee depreciation of June, July was quite unexpected
  • Soverign bond issue is an option on the table, but we will not rush into a decision
  • Rupee's level today is not the final level, rupee strengthened to 58-59 a few days ago
  • On the subsidy bill we will make the calculations as we go along
  • A number of factors will decide the subsidy bill
  • This year we are planning to increase revenues by 21 per cent
  • We will achieve our disinvestment target
  • Fiscal deficit this year will be contained to 4.8 per cent
  • We will raise money abroad, because many of our PSUs have a strong balance sheet to raise money abroad
  • The June and July gold imports are less than last year
  • Last year it was 845 metric tonnes, this year we will try to keep it below it
  • There is no level for the rupee, what we want is a stable currency
  • A country that has fiscal deficit and inflation must accept some depreciation of currency
  • We don't want anyone taking advantage of what the Fed chairman says
  • On August 3 will meet leaders of opposition on Insurance Bill
  • We want to stabilise the rupee, reduce volatility
  • We don't want speculation drive the rupee
  • I promise we will tackle current account deficit this year too
  • FDI in multi-brand retail has not come to India but that is not to say that FDI has not come to India
  • FDI in multi-brand retail is being held back because there are some pertinent questions
  • The clarifications should be issued in the next few days on FDI in multi-brand retail and after that we can expect first investment in multi-brand retail
  • We are in earch and selection mode--for the next RBI Governor