Govt accords 1st priority to inflation, price stability: FM

Finance Minister P Chidambaram said the investment climate is robust, reports CNBC-TV18. "There was never any problem with investment sentiment."

He feels crude prices won't affect domestic administered fuel prices.

According to Finance Minister, the Banking Bill is to be tabled in the monsoon session of Parliament.

He expects inflation to moderate over time. "The government's first priority is inflation and price stability. We may have to sacrifice a bit of growth to tackle inflation."

Excerpts from CNBC-TV18’s exclusive interview with P Chidambaram:

Q: You have already gone on record to say that the economic reforms agenda is going to move forward. Give us a sense of the contours that we are going to see as priority?

A: Pending bills are obviously high priority before we think of new legislation. We are all aware of the three pending bills. Whatever has been reported favourably by the committee must now come before the House and as I said, I intend to reach out to even those who may have voted against us on this issue - the 123 agreement - and ask for support and try to take the legislative process forward.

Q: People who are watching it - global and domestic investors - have been apprehensive about the kind of instability that has gripped the economy. What is your message now to people who are watching the economy and markets?

A: There was never any instability, if I may say with some respect. The instability factor was largely an invented factor fanned by excessive publicity. We have demonstrated that we have the majority support, even if the whole House and every single member had been present and had voted. (The number) 275 is more than half of the full strength of the House. Now we will reach to get more support because there are people who may have voted against us on this issue and who support economic reforms. So, we will reach out to them and try to increase the majority support for those reforms.

I want to tell investors, in my mind there has never been any doubt about the stability of this government and you should accept my word for that.

Q: Are we actually going to see The Banking Regulation Bill come through in the Monsoon Session?

A: I don’t know when the Monsoon Session will start. We will have to sit down with the Cabinet Committee on Parliamentary Affairs and with the Leader of the House, with the Minister for Parliamentary Affairs. I would of course press for some bills of my ministry. But other ministers also would press for bills of their ministries, but they will draw a priority list very soon.