New Delhi: Union Finance Minister P. Chidambaram, on Thursday, said that the Indian economy has stabilised and the investment cycle must start again for higher growth. Chidambaram was addressing a press conference at AICC headquarters in New Delhi.
On the Capex plan for 23 PSUs, Chidambaram said the government had estimated Rs. 1.33 lakh crore for the year 2014-15.
Chidambaram also said that additional capital requirement of PSU banks is over Rs. 45,528 crore.
The Finance Minister added that the inflation is largely driven by food items and open market sale of foodgrain is a way of cooling inflation.
Chidambaram hoped that the RBI will keep inflation and growth in mind in deciding policy rates at the next review.
The Finance Minister said that he had proposed to the Union Cabinet that non-binding conciliation on tax dispute with Vodafone be withdrawn and also defend the arbitration notice.
Chidambaram added “Rupee at 60 per dollar is true reflection of the value of currency.”
Chidambaram also said the next government must respect the appointment of Raghuram Rajan as RBI Governor taking into consideration his outstanding record.
Chidambaram added that he doesn't agree with the comment that the Election Commission is weakest and asserted that the poll panel has done a tremendous job.
