But he said he was worried about the potential impact of further competitive devaluations on India. Chidambaram is on a four-country roadshow to drum up foreign investment.
The RBI cut interest rates earlier on Tuesday for the first time in nine months but struck a cautious note on further easing as it waits to see how the government’s upcoming budget aims to trim a bloated fiscal deficit
Chidambaram agreed fiscal consolidation was essential. “I welcome the decision (RBI governor) has taken today, going forward, if inflation moderates, I think he will do more..... More has to be done on the fiscal side (to) contain inflation and revive growth. To revive growth, the ball is in the government’s court.”