"Investment must revive in this country...the economy has stabilised. The investment cycle has to start again. Both domestic investment and foreign investment must be encouraged.
That will lead us to high growth," he said while addressing the media at the AICC headquarters here.

Chidambaram said the capital expenditure plan of 23 public sector undertakings, including Oil and Natural Gas Corp, Oil India Ltd, Indian Oil Corp and NTPC, will go up to Rs 1.33 lakh crore from Rs 1.25 lakh crore in 2013-14.

He said the capital requirement of banks in 2014-15 is estimated at Rs 45,528 crore as against Rs 14,000 crore in the previous financial year. In the Interim Budget, the government proposed to infuse Rs 11,200 crore in public sector banks.

Chidambaram said the Foreign Direct Investment inflows in 2013-14 would exceed USD 27 billion. The inflows were USD 26.95 billion in 2012-13. As per the latest estimate, it was USD 26.9 billion during April-February.

The Finance Minister said inflation is being driven mainly by food items and the open market sale of foodgrains is a way of cooling prices.

While keeping inflation under check, Chidambaram said the central bank should keep in mind the need to spur growth.

He expressed confidence that the Reserve Bank of India would keep this in mind while deciding on monetary policy initiatives.

When asked about reports that the RBI Governor may be changed if the BJP-led alliance comes to power, Chidambaram said Raghuram Rajan has outstanding credentials and the new government must respect the appointment.

India's economic growth rate, which slipped to a decade low of 4.5 percent in 2012-13, is estimated to inch up to 4.9 percent in 2013-14. It is projected to increase to 5.5 percent in the current financial year.


Latest News from India News Desk