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Indian Finance Minister Palaniappan Chidambaram has said that the government will take all steps to contain fiscal deficit and pursue reforms to deal with economic challenges.
The 2013-14 Indian Budget will be presented on February 28.
“The fiscal consolidation roadmap has been laid out and the government will not breach the fiscal deficit limits,” Chidambaram said during pre-Budget consultations with state finance ministers.
India’s economy is estimated to grow by 6.1 per cent this year, according to the United Nations.
A plan has been chalked out by India’s government to restrict the fiscal deficit to 3 per cent of GDP by 2016-17.
Chidambaram highlighted the challenges before the economy and the urgency of reform measures needed to address them.
“The second major challenge that the economy faces is the high Current Account Deficit (CAD) level,” he said, adding that foreign investment is not an option but an economic imperative.
Since September 2012, the Indian Government has opened industries including retail and aviation to more foreign direct investment.
A panel has also been set up by the government to speed up infrastructure projects.
The Finance Minister also asked the states to fast track clearances needed for investment proposals.
An official release said that he felt that if “we take concrete measures to tackle these challenges, next year would be a better year”.