The government is likely to take more steps to arrest the decline in exports and to attract more capital inflows to shield the economy from external shocks even as it tries to clear the regulatory hurdles coming in the way of deepening the corporate debt market. These steps were discussed by finance minister P Chidambaram with financial regulators such as RBI, Sebi, Irda and PFRDA, at a meeting of the Financial Stability and Development Council (FSDC) here. Chidambaram, who heads the council, reviewed the recent global developments, especially in the euro zone and the US. “FSDC assessed the external sector vulnerabilities as also the risks arising out of them,” the finance ministry said.
The council debated various policy suggestions on mitigating the vulnerabilities through moderating imports, promoting exports and encouraging capital flows through progressive liberalisation. The finance minister also discussed the steps taken towards developing the corporate bond market as also the measures needed to rationalise the framework for regulation of corporate debt.