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India averted a ‘financial emergency’: Chidambaram

Last Updated: Saturday, October 6, 2012 - 21:38

Zeebiz Bureau

Finance Minister P Chidambaram has said that the country has averted a ‘financial emergency’, owing to the recent depreciation of the rupee that has to an extent de-shaped the economic condition of India.

Chidambaram, in a candid chat with Swati Chaturvedi of on her show Kahiye Janab, talked about the overall economic condition of the country and the government’s approach towards nation’s growth.

Talking about the government’s ‘big bang’ reforms vis-à-vis 1991 measures, the Finance Minister said, “1991 was a paradigm shift. I don’t think we should compare the present reforms with that of 1991 reforms.”

“We still have a long way to go but I think our current growth model is based on the model that was laid in 1991,” he said.

Talking about the threats of investment rating, Chidambaram said, “The rating agencies had threatened to downgrade India's sovereign credit rating in August. We should have been prepared because we didn’t have time to wait for the investment agencies to downgrade us to junk”.

Asked about the allegations on corruption and scams that is hovering over the ruling UPA-II, a confident Chidambaram said that the government will surely erase the stains of all the allegations.

Talking about the accusations on ‘kleptocracy and aiding rent-seekers’ the Finance Minister said, “I don’t think they do any independent research; the foreign media writes whatever appears in the Indian media in a better English”.

On being asked about the contentious Vodafone retrospective tax issue, Chidambaram said, “The High Court held its judgment in favour of the government while the Supreme Court reversed it. We are working it out as it affected sentiments adversely”.

Talking about paving way for the younger lot in politics, Chidambaram said, “I would be the first one to offer my seat to the younger generation. In fact, I have always believed that more and more youth should take part in politics”.

Asked further about contesting the next Lok Sabha Elections due in 18 months’ time, Chidambaram said, “I don’t know. There are many other things that I would like to do in life. Life is short. We will take a call once the elections are announced”.

First Published: Saturday, October 6, 2012 - 21:33
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