New Delhi, Oct 7 (UNI) The Union Cabinet tonight took stock of the global financial turmoil and its impact on India, and assured that the Government will respond swiftly to the needs of the market and would be willing to infuse more liquidity if required.
Briefing reporters on the Cabinet reviewing the economic situation, Finance Minister P Chidambaram exuded confidence that the investor sentiment in the stock markets would improve as the fundamentals of the economy were strong, and the Government had taken quick measures to improve foreign flows.
Mr Chidambaram also assured the public that their deposits were safe and the health of the banking system was robust.
He reiterated that though improving liquidity had gained primacy, controlling inflation continued to be high on the agenda of the Government.
He expressed the hope that the economy would be able to clock a growth rate of 8 per cent in the current fiscal, and even if the IMF projection this morning that India would record a growth rate of 7.9 per cent was right, it would still be the second fastest growing economy in the world, registering double the growth rate of the world economy.
''We are conscious of the fact that liquidity conditions in India too have tightened in the last few weeks. Our authorities have responded to the situation. The Reserve Bank of India has taken steps to infuse more liquidity into the market. We will watch the situation carefully and continuously, and respond swiftly to the needs of the market. Steps will be taken to infuse more liquidity, if required,'' Mr Chidambaram said, reading out the statement approved by the Cabinet.
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