"The monetary authority in India has on 17th April 2012 reversed the policy rates for the first time, after a gap of nearly three years. I hope this will help in investment revival and contribute to strengthening of business sentiments," he said at a press conference in Manila after taking over as the chair of Asian Development Bank's Board of Governors.
Indicating that the government will do its bit to match RBI's policy action, he said on the fiscal front, the government is committed to bring down the subsidy bill below 2% of GDP in 2012-13.
next three years.
"Steps are being taken to meet the fiscal deficit target," he said.
The finance minister said the government had taken several steps to shore up the short and medium term
growth prospects which include gradual liberalization of capital market and encouraging capital inflows including through FIIs, FDI and in the area of external commercial borrowings, especially for infrastructure financing.
"I am confident that thestrong fundamentals of our economy will help us return to a sustained growth path of pre 2008 crisis level in the coming years," he said.
The Indian economy is more resilient than many other nations to withstand this fresh round of global economic turmoil, as the bulk of India's GDP is domestic demand driven, he said according to an official statement.
(Source- http://economictimes.indiatimes.com)
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