"Now if one major proposal is withdrawn do you think it will affect the whole lot of FDI proposals," Sinha told reporters after addressing a meeting of the World Association of Small and Medium Enterprises here.

When asked about the reason for Tatas' withdrawal, Sinha said this should be discussed with the civil aviation minister Ananth Kumar.

"There are some projects which are delayed or expedited or held up owing to some reasons. That does not mean it will adversely affect FDI inflows into the country," Sinha said.

The Tatas have charged successive governments of holding back clearance for the project for over three years and announced their withdrawal from the project on Tuesday.

Sinha also took exception to what he called some distortion in a section of themedia about his statements on revival of the industry from September.

"Let me clarify what I had said was that the budgetary proposals will start getting implemented more speedily from September 15. I did not say that the government will bring a new budget or a new set of measures for giving a boost to the economy," he said.

Sinha refused to comment on the government's view of going ahead with the divestment process in the wake of adverse international conditions.

On whether the government was considering relaxing non-performing assets norms regarding loans to small and other industries, Sinha said, "The government will be working on so many things."

He said the decision to raise and rationalise duty-drawback will give an impetus to exports, especially in the garment sector.

On the 7.71 per cent growth in exports registered in July, the finance minister said he was always optimistic of a turnaround in various sectors.