ID :
23401
Thu, 10/09/2008 - 11:59
Auther :
Shortlink :
http://m.oananews.org//node/23401
The shortlink copeid
We are alive to liquidity problem in system: F.M.
New Delhi, Oct 8 (PTI) Asserting that fundamentals of Indian economy are still strong despite global financial crisis, Finance Minister P Chidambaram Wednesday admitted that the system faces some liquidity problem which will be addressed.
"There is liquidity problem. But, we will address the
liquidity issue. Reserve Bank of India (R.B.I.) Governor is
already on record, if necessary he will take further measures
to infuse liquidity," Chidambaram told reporters here.
He said the Government is fully alive to the need for
greater liquidity in the Indian market.
"Of course, liquidity will be provided. Everybody in the
world is doing it. We are not affected to the same extent
(by global financial crisis), but to the extent there is
shortage of liquidity in the Indian market, we will provide
liquidity," he said.
He, however, said every Indian must be confident that
the economy is still a growing economy.
"My firm opinion is that fundamentals of Indian economy
are still strong. Economy is still humming with activity and
it is growing," Chidambaram said.
Chidambaram said the R.B.I. measure to infuse Rs 20,000
crore liquidity through cut in mandatory cash deposit
requirement for banks, Cash Reserve Ratio (C.R.R.), will kick
in from Friday as Thursday is a holiday.
He also referred to the Securities and Exchange Board of
India (S.E.B.I.) measure to relax curbs on participatory notes
and the Government's move to include
mining, refining and exploration in infrastructure to enable
them to access greater amount of overseas debt.
To buttress his arguments that fundamentals of Indian
economy are strong, Chidambaram said there is high investment,
many sector are showing impressive growth, tax collections are
good and exports as well as imports are rising, besides banks
are well capitalised.
Quoting a report by the Centre for Monitoring Indian
Economy (C.M.I.E.), the Finance Minister said cumulative
investment is extremely high.
"Investment at the end of June 2008 is little over Rs 66
lakh crore against Rs 44 lakh crore at the end of June 2007.
In July, there has been further investment of Rs 2.18 lakh
crore and in August, another Rs 1.32 lakh crore," he said.
These are the investment intentions that have been
announced and firmed up, he said.
Chidambaram also said all banks are well capitalised and
capital adequacy ratio is in between 10 percent to 13.65
percent, well above the Basel norms.
The Finance Minister said indirect tax collections are
over the target and growing by over 14 percent. "Customs
revenue collections for September are higher than the average
for April-August."
On direct tax front, personal income tax collections have
grown by 23.4 percent and corporate tax collections by 35.3
percent, he added.
The Commerce Ministry has reported that exports have
grown in dollar terms by 35.1 percent in April-August, while
imports have risen by 37.7 percent, Chidambaram said.
"Many sectors have shown very impressive growth rate.
Coal, mining, automobiles, chemicals and chemical products,
construction sector. Railway revenue earnings traffic grew by
9.4 percent," he said. PTI DP
"There is liquidity problem. But, we will address the
liquidity issue. Reserve Bank of India (R.B.I.) Governor is
already on record, if necessary he will take further measures
to infuse liquidity," Chidambaram told reporters here.
He said the Government is fully alive to the need for
greater liquidity in the Indian market.
"Of course, liquidity will be provided. Everybody in the
world is doing it. We are not affected to the same extent
(by global financial crisis), but to the extent there is
shortage of liquidity in the Indian market, we will provide
liquidity," he said.
He, however, said every Indian must be confident that
the economy is still a growing economy.
"My firm opinion is that fundamentals of Indian economy
are still strong. Economy is still humming with activity and
it is growing," Chidambaram said.
Chidambaram said the R.B.I. measure to infuse Rs 20,000
crore liquidity through cut in mandatory cash deposit
requirement for banks, Cash Reserve Ratio (C.R.R.), will kick
in from Friday as Thursday is a holiday.
He also referred to the Securities and Exchange Board of
India (S.E.B.I.) measure to relax curbs on participatory notes
and the Government's move to include
mining, refining and exploration in infrastructure to enable
them to access greater amount of overseas debt.
To buttress his arguments that fundamentals of Indian
economy are strong, Chidambaram said there is high investment,
many sector are showing impressive growth, tax collections are
good and exports as well as imports are rising, besides banks
are well capitalised.
Quoting a report by the Centre for Monitoring Indian
Economy (C.M.I.E.), the Finance Minister said cumulative
investment is extremely high.
"Investment at the end of June 2008 is little over Rs 66
lakh crore against Rs 44 lakh crore at the end of June 2007.
In July, there has been further investment of Rs 2.18 lakh
crore and in August, another Rs 1.32 lakh crore," he said.
These are the investment intentions that have been
announced and firmed up, he said.
Chidambaram also said all banks are well capitalised and
capital adequacy ratio is in between 10 percent to 13.65
percent, well above the Basel norms.
The Finance Minister said indirect tax collections are
over the target and growing by over 14 percent. "Customs
revenue collections for September are higher than the average
for April-August."
On direct tax front, personal income tax collections have
grown by 23.4 percent and corporate tax collections by 35.3
percent, he added.
The Commerce Ministry has reported that exports have
grown in dollar terms by 35.1 percent in April-August, while
imports have risen by 37.7 percent, Chidambaram said.
"Many sectors have shown very impressive growth rate.
Coal, mining, automobiles, chemicals and chemical products,
construction sector. Railway revenue earnings traffic grew by
9.4 percent," he said. PTI DP
