No need for unwarranted pessimism: Chidambaram

FM was briefing the media; said growth to pick up from Q2

The Finance Minister today held a briefing for the media in which he said that quarter one GDP is expected to be sluggish.

Chidambaram today said that the rupee has crossed appropriate level. He said that although he wasn't in a position to comment on Federal Open Market Committee minutes, however, he said that we should brace for the Fed's comments on easing stimulus.
 

However, it is expected growth to pick up in second quarter or fourth quarter. 

 

He said, there is was no reason for unwarranted pessimism in markets. 

 

The FM said there is widespread concern over volatility in rupee. However, there is volatility in all Emerging Market currencies.

 

FDI inflows in the first quarter were at $9.4 billion.

 

He said, the Indian economy is currently challenged due to local and global.

 

However, he said, "we have taken many measures to revive investment and growth and they were committed to reduce fiscal deficit, and Current Account Deficit will be met".

 

He said, increasing coal production was a part of their structural plan. However, increasing duty on luxury items was not a priority.

 

Chidambaram added that, reducing bond yields would be considered in the RBI policy.

He further said that the government will infuse Rs 14,000 crore in PSUs in 2014.