Loud & clear: P Chidambaram says no quick-fixes to economic problems

P Chidambaram speaks on a host of issues—raising FDI cap, taking steps to boost economy—and says there can be no quick-fixes to economic problems.


On FDI Cap (Decision in third week of July): They (DIPP) have told me that they will bring a paper to Cabinet. Hopefully in the second week, it will be sent to Cabinet and then we should be able to take a decision in third week

On Rate Cut (Listen to Bankers as well): While the case of the consumers, the borrowers is a very strong case, for the bankers also they put a equally strong case

On Large & More Banks (There’s a case for both): A large number of banks will mean more competition…Large banks will mean that we are able to fi nance large projects. So, both are required

On Core Sectors (Output must increase): Manufacturing must... Output must increase. We must produce more coal, more iron ore, more steel, more aluminium

On Economy (There are no quick-fi xes): “Manufacturing is not picking up because demand is sluggish. Demand for cars, two-wheelers, white goods is sluggish

On Global Economy (Upturn has not happened): “The upturn (in global economy) that is expected has not taken place. At the same time there is no spiralling down either…It is a slow climb. The correct approach is to keep the focus on long term. There are no quick fi xes. Take measures for long term...

On RBI’s Role (Must look at larger mandate): Yes, RBI’s mandate is price stability, containing infl ation and maintaining fi scal stability but that must be understood as part of a larger mandate of growth

On Bank Licence Ceiling (There would be no cap): I don’t think there is a ceiling... If there are very few eligible applicants, then the number of banks that will get licences will also be few. I don’t think that RBI has any ceiling in mind