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

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