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The government remains committed to a well-regulated financial market, which is the heart of the economy, and helping entrepreneurs raise capital, the Finance Minister added.
The Finance Minister’s series of meetings today with officials of the Reserve Bank of India (RBI) and the Securities & Exchange Board of India (Sebi) were fruitful, he said, adding that the officials are supportive of the measures taken by the government.
"We have to rediscover the path that we followed until a few years ago. We need confidence in ourselves and follow the laws of economics," he added.
The high inflation is still a matter of concern, he said, but the government’s steps over the past few days have reined in inflation.
In his first visit to the country’s financial capital after taking over as the finance minister on 1 August, Mr Chidambaram met RBI officials, including Governor D. Subbarao, as well as officials at the Sebi and representatives of the mutual fund industry in Mumbai today to discuss measures to revive the Indian economy and increase investor interest. He said he would also meet foreign institutional investors next.
The meetings followed a series of big-ticket reforms announced by the government over the last month and early this month.
The Finance Minister was accompanied by senior Finance Ministry officials, including Economic Affairs Secretary Arvind Mayaram.
Beginning September 14, the government unveiled a raft of reforms, such as opening up sectors such as retail, aviation, insurance, pension and power trading to foreign direct investment (FDI). Mr Chidambaram also set up a committee headed by Parthasarathi Shome to suggest amendments to General Anti-Avoidance Rule (GAAR) and retrospective tax issues.
The RBI is holding its second quarter review of monetary policy on 30 October 2012. Yesterday, senior RBI officials met with the chiefs of various banks in India at a pre-review gathering. The bankers assured the RBI they would pass on the benefits of a rate cut to consumers. Most banks asked for a 1.5 per cent cut in the cash reserve ratio (CRR), State Bank of India chairman Pratip Chaudhuri told NDTV yesterday. The RBI expressed concern that credit growth was lower than expected.