FM for more reforms, wants end to impasse on coal, iron ore

By the end of the day, India will emerge stronger , says Chidambaram

Facing all round attack over the bad state of the economy, Government today said unleashing of more reforms was the way to deal with the situation and pressed for ending the 'impasse' in coal and iron ore sectors to push growth.

Finance Minister P Chidambaram listed ten steps including promoting of manufacturing sector and exports to boost faltering growth, which needs to be raised to its potential rate of 8 per cent.

He was replying to a debate on the economic situation in the Lok Sabha during which Opposition said the government's 'reckless policies' had led to despondency and uncertainty in the country and that the exit of UPA from power was the only way to remedy the situation.

Defending the government's actions to address economic woes, Chidambaram said, 'What we need now is not less reforms but more reforms; not more restrictions but less restrictions; not a close economy but a more open economy.'

Referring to the steps being taken to restrict fiscal deficit to 4.8 per cent of the Gross Domestic Product (GDP), the Minister said he had drawn red line and that will not be crossed.

'We will go through some pain, by the end of the day, I am sure we will be able to emerge stronger', he said, adding all efforts would be made to bring down the Current Account Deficit (CAD) to USD 70 billion from USD 88.2 billion during the 2012-13.

On specific question of India issuing sovereign bonds to raise overseas funds, Chidambaram said, 'All options are on table...Government will exercise its judgement at appropriate time. We must add to our reserves'.