A rout in world markets triggered across-the-board selling, pulling down benchmark BSE S&P Sensex by 214 points on Thursday to end below 19K-mark for the first time in nearly two months, even as Finance Minister P Chidambaram announced that more economic reforms are on the anvil.
Addressing journalists a day after Fitch Ratings upgraded India’s sovereign rating from negative to stable, Chidambaram agreed with the global ratings agency that more reforms were necessary. “My appeal to everyone is we have to take a long term view what’s happening in India and what will be the results we will achieve over a period of time...I think significant results have been achieved in last 9 months and I am looking forward to more reforms,” Chidambaram said.
He said that the government would take steps to boost economic growth and curb fiscal and trade deficit. “These will include gas pricing, FDI limits, steps to be taken by SEBI based on Chandrashekhar Committee report, and skill development...We will leave no stone unturned to achieve revenue and fiscal deficit targets,” Chidambaram added.
While coal and gas pricing issues would be resolved by June end, more reforms would be announced by the mid-August. Chidambaram also promised to push 30-40 of the 250 private projects that have been stalled. The Prime Minister has also called for a meeting with the stae Finance Ministers to review the economic situation, he said.
