Finance Minister Pranab Mukherjee said on Tuesday that the current economic situation warrants a close watch, adding that effects of drought may be felt in the coming quarters.
He said that stimulus measures have helped in moderating India’s economic slowdown and there are positive indications that growth will recover in FY'10.
Mukherjee was speaking at the economic editors’ meet.
He added that the government is aiming for stake sales in PSUs with less than 10 per cent public holding. He also said that India’s forex reserve position is comfortable.