<p>Terming the sudden outflow of $5 billion as “unfortunate,” Finance Minister P Chidambaram on Tuesday said there should, however, be no room for pessimism as fundamentals of the economy are intact and government is moving ahead on the reforms path.<br /><br /></p>.<p>The Minister further said the government will take a call on revising the FDI caps in different sectors in the second or third week of July.<br /><br />“Among the large emerging economies, we are the fastest growing economies next only to China and therefore I am confident that money will flow back into India. Investors will find India a safe destination to invest. And this temporary phase should pass. There is no need for pessimism”, he told reporters on the sidelines of a Crisil function.<br /><br />Replying to a question on declining value of rupee, the Minister said, as much as $5 billion went out of India within two weeks of the statement by US Federal Reserve Chairman Ben Bernanke which was “completely misunderstood”.<br /><br />“The rupee is very stable. A large amount of money flowed into India. Between January and May alone, I think a little over $5 billion flowed into India. (But) following Bernanke’s statement, $5 billion flowed out of India in a matter of two weeks. This is unfortunate”, he said.<br /><br />The rupee touched all-time low of 59.98 to a dollar last week following Bernanke’s statement that the US government could slowdown purchase of bonds, depending on economic condition, later this year. Today rupee closed at 59.66.<br /><br />Besides reviewing the FDI caps, the government will be taking some key decisions in the coming days, Chidambaram said.<br /><br />“All these points to an economy on the move...government clearly is committed to the path of reforms. So I think we should not spread pessimism or panic. The money will flow back into India. I think things will settle down”, he added.</p>
<p>Terming the sudden outflow of $5 billion as “unfortunate,” Finance Minister P Chidambaram on Tuesday said there should, however, be no room for pessimism as fundamentals of the economy are intact and government is moving ahead on the reforms path.<br /><br /></p>.<p>The Minister further said the government will take a call on revising the FDI caps in different sectors in the second or third week of July.<br /><br />“Among the large emerging economies, we are the fastest growing economies next only to China and therefore I am confident that money will flow back into India. Investors will find India a safe destination to invest. And this temporary phase should pass. There is no need for pessimism”, he told reporters on the sidelines of a Crisil function.<br /><br />Replying to a question on declining value of rupee, the Minister said, as much as $5 billion went out of India within two weeks of the statement by US Federal Reserve Chairman Ben Bernanke which was “completely misunderstood”.<br /><br />“The rupee is very stable. A large amount of money flowed into India. Between January and May alone, I think a little over $5 billion flowed into India. (But) following Bernanke’s statement, $5 billion flowed out of India in a matter of two weeks. This is unfortunate”, he said.<br /><br />The rupee touched all-time low of 59.98 to a dollar last week following Bernanke’s statement that the US government could slowdown purchase of bonds, depending on economic condition, later this year. Today rupee closed at 59.66.<br /><br />Besides reviewing the FDI caps, the government will be taking some key decisions in the coming days, Chidambaram said.<br /><br />“All these points to an economy on the move...government clearly is committed to the path of reforms. So I think we should not spread pessimism or panic. The money will flow back into India. I think things will settle down”, he added.</p>