The government will take structural measures to further reduce CAD and despite high rate of NPAs, there are a number of infrastructure projects that are still viable, announced finance minister P Chidambaram in an address to mediapersons on Thursday.
In an attempt to calm nerves over the move to contain the rupee's fall, the finance minister reiterated that the government had no intention to control capital flows. He also expressed concerns over the fall across emerging-market currencies. Chidambaram added that there was no reason for pessimism and expected growth to pick up in the second and third quarters of the fiscal year.
Highlighting the need to boost mining, the finance minister said that the government was keen to get the iron-ore mining sector back on its feet and aid the sector’s contribution to economic growth.
“Reserves stand at USD 277 billion and the government will honour its commitments on the fiscal deficit,” he said.
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