Steps on way to push growth, cut current account deficit: P Chidambaram

MUMBAI: Finance minister P Chidambaram on Thursday said the government will take all steps to boost growth and at the same time try to lower the current account deficit to below $56 billion this financial year.

“We will take all steps to boost growth, create a friendly and efficient investment environment. We will strengthen regulations to improve foreign investment,” the finance minister said at an Axis Capital conference.

He said the government has cleared 99 projects worth Rs 3.5 lakh crore and that there are some big foreign investment proposals in sectors such as pharmaceuticals, aviation and telecom.

“We have huge proposals in the pharma sector for FDI. I think there will be at least one more, maybe two more, FDI in aviation,” Chidambaram said, adding there is huge interest in telecom FDI as well. The finance minister also said the government is keen to reduce current account deficit (CAD). “Let me assure you that I am not in competition with the Reserve Bank governor to lower CAD targets. But I will try to lower CAD to below $56 billion,” he said.

“Fortunately, elections are not in this financial year. Mark my words, we will ensure fiscal discipline. Every rupee lost in revenue will be met by one rupee cut in expenditure,” he said. Chidambaram said a number of big projects are coming up and the emphasis is on implementation now.

“The PM has given approval to go forward with Navi Mumbai Airport and Pune Civilian Airport projects,” he said. “The Tatas are building a new steel town by investing Rs 40,000 crore and another Rs 20,000 crore in the next phase.”

RBI has got $18 billion from the FCNR window, may get $25 billion before the month end, the finance minister said. “Though cumulative FII is net negative, we believe it will be better positive or net zero by the end of year,” he said.