Efforts are being made to turn the economy around and create a more investor-friendly climate, Chidambaram said while addressing the meeting of the financial sector regulators as part of high-level committee meeting of Financial Stability and Development Council (FSDC), held in the capital on Thursday.
He reiterated governments commitment on observing the path of fiscal consolidation and imposition of fiscal targets and policies that will make necessary fiscal correction needed for the economy and take the economy back to the path of higher growth.
The finance minister, who has just returned from series of road shows held in Asian and European countries, aims to attract foreign investment and address investor concerns. He hoped to get positive results from the roadshows.
Assuring Indias commitment to pursue economic reforms, Chidambaram told the worried foreign investors that the government will cut fiscal and current account deficits to help economy return to the 8% growth path.
This was the sixth FSDC meeting, attended by RBI governor D Subbarao, Sebi chairman UK Sinha, PFRDA chairman Yogesh Agarwal and Irda chairman J Hari Narayan, besides other senior ministry officials.
The high-level FSDC, which comprises all financial regulators, coordinates the working of regulators and looks at economic and financial issues. The financial sector regulators presented their suggestions for the budget 2013-14, which would be unveiled by the finance minister on February 28.
In a bit to address the immediate concerns of the investors, Chidambaram announced measures such as postponement of GAAR just a week before his foreign trip for the investors meet. In the long-term, the government aims at increasing revenues by simplifying tax processes and increasing tax base.
In its efforts to revive investments, the finance ministry has pear-headed efforts to streamline infrastructure projects through Cabinet Committee on Investments, which recently held its first meeting. Chidambaram in November last year outlined a fiscal consolidation roadmap that plans to restrict the fiscal deficit for the current fiscal at 5.3% of GDP and bring it down to 3% by 2013-14.