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Govt may lift FDI cap in some sectors by mid-July: FM

Terming the sudden outflow of $5 bn as 'unfortunate', finance minister P Chidambaram today said there should, however, be no room for pessimism as fundamentals of the economy are intact.

business Updated: Jun 26, 2013 02:51 IST
HT Correspondent
HT Correspondent
Hindustan Times
P Chidambaram,fdi,indian economy

Finance minister P Chidambaram on Tuesday said a revised policy on foreign direct investment (FDI) seeking to ease investment caps in several sectors may be announced by mid-July. The department of industrial policy and promotion will hold discussions with other ministries on the issue, he said on the sidelines of a Crisil function.

He also indicated that a few more key decisions could be taken on Thursday.

Reiterating that there was no need to panic over the fall in rupee, Chidambaram said that the Indian economy is still one of the fastest growing and the fundamentals were strong.

“I am confident that the money will flow back to India and this (the slump) temporary phase should pass… there is no need for pessimism,” the finance minister said, adding that good monsoon leading to a healthy kharif should push up economic growth.

Speaking at the launch of a new index by Crisil to measure the progress of financial inclusion, he noted that more focus needs to be given to central India. “Central Indian states are holding back India’s growth... We must focus on central India,” Chidambaram said.

According to the newly launched index — Crisil Inclusix — that measures the progress of financial inclusion on a scale of 0 to 100, the latter being the ideal, the overall index for the country is 40.1.

First Published: Jun 25, 2013 20:49 IST