Press Esc to close
Thursday 17 August 2017
News updated at 10:47 PM IST

Govt to take more reform measures to spur growth: FM

New Delhi, Dec 14, 2012, DHNS : 22:06 IST

Worried about sticky inflation numbers

Having steered the economy through a slew of reform measures in the weeks gone by, Finance Minister P Chidambaram, on Friday, said the government will take more steps in the next few weeks to spur growth and revive investor confidence.

“I am confident that the steps we have taken, and some more that we will take in the next few weeks, will help turn the Indian economy around,” Chidambaram said, addressing the ‘Delhi Economics Conclave’, which is organised jointly by Department of Economic Affairs, the National Institute of Public Finance and Policy and Confederation of Indian Industry.

The government has taken a raft of reform measures, including allowing FDI in multi-brand retail and opening insurance and pension sectors to foreign investors in the earlier weeks, which have translated into a robust foreign portfolio capital inflow amounting to $21 billion up to November 30.

The stock markets leading indices too have risen by about 11.5 per cent between August 1 and December 13, pointing to growing investor confidence and the return of the small investor.

On Thursday, the Cabinet took some important decisions to perk up reforms that included setting up of the Cabinet Committee on Investment to quicken the pace of decision making in critical infrastructure projects. The Cabinet also approved a landmark draft Bill on Land Acquisition and a new investment policy for urea plants.

Chidambaram, however, expressed concern over sticky retail inflation numbers, which came a little below 10 per cent, higher than expected trade deficit hovering at 10.3 per cent and the Current Account Deficit at 4.2 per cent of GDP.

The Finance Minister said that these macroeconomic imbalances posed challenges, which called for bold and innovative measures.

Further, he said, “The emerging economies are affected not only because of the fall in international demand for their products, but also because of the severely diminished policy space, they have to stimulate their economies after the crisis.

“Higher inflation and higher fiscal deficits make it hard for the emerging economies, with few exceptions, to resort to standard counter-cyclical measures.”

Chidambaram also asked Asian G20 member nations and Russia to increase resource base of the Asian Development Bank for development of the region.

“What scope is there for international cooperation in reviving growth, the theme of this conference? In their declaration at Los Cabos earlier in the year, G20 leaders declared that all G20 members will take the necessary actions to strengthen global growth and restore confidence,” he said.

Go to Top

Photo Gallery
A fruit vendor, holding an umbrella, waits for customers at a street in Kolkata on Thursday.

A fruit vendor, holding an umbrella, waits for customers at a street in Kolkata on Thursday.

Ranbir Kapoor, actor and co-owner Mumbai City FC meeting fans during the Indian Super League...

Ranbir Kapoor, actor and co-owner Mumbai City FC meeting fans during the Indian Super League...

India's Ramandeep Singh in action against Austria in their final encounter of the Europe Tour...

India's Ramandeep Singh in action against Austria in their final encounter of the Europe Tour...

People from Parsi community cut a cake to celebrate their new year, Navroze, in Ahmedabad on ...

People from Parsi community cut a cake to celebrate their new year, Navroze, in Ahmedabad on ...

Nail artist Murari Aditya, 75 years, shows his 38 inch long nails, at his residence in Kolkata ...

Nail artist Murari Aditya, 75 years, shows his 38 inch long nails, at his residence in Kolkata ...

The first batch of Dasara elephants being welcomed on their arrival at Mysuru Palace on Thursday.

The first batch of Dasara elephants being welcomed on their arrival at Mysuru Palace on Thursday.

: Participants struggle during a greased-pole climbing competition held as a part of independence...

: Participants struggle during a greased-pole climbing competition held as a part of independence...

Activist Irom Sharmila with her husband British citizen Desmond Coutinha after getting married...

Activist Irom Sharmila with her husband British citizen Desmond Coutinha after getting married...

A visitor looks at an art installation, symbolizing the partition of India and Pakistan...

A visitor looks at an art installation, symbolizing the partition of India and Pakistan...

Artist Sunil Paul gives finishing touches on a statue of St. Mother Teresa at his studio...

Artist Sunil Paul gives finishing touches on a statue of St. Mother Teresa at his studio...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.