'Outflow of five billion US dollars unfortunate, Govt. moving ahead on reforms path', says Chidambaram

New Delhi, June 26 (ANI): Finance Minister P. Chidambaram on Wednesday termed the sudden outflow of five billion US dollars as unfortunate.

He said there should, however, be no room for pessimism as fundamentals of the economy are intact.

Chidambaram said, among the large emerging economies, India is the fastest growing economy next only to China and the money will flow back into India.

"Among the large emerging economies, we are the fastest growing economy, next only to China, and therefore I am confident that money will flow back into India. Investors will find India a safe destination to invest. And this temporary phase should pass. There is no need for pessimism," he told mediapersons here on the sidelines of a Crisil function.

Chidambaram said that the government is moving ahead on the reforms path.

"Government clearly is committed to the path of reforms. So, I think we should not spread pessimism or panic. The money will flow back into India. I think things will settle down," he said.

The Finance Minister said the government would take a call on revising the FDI caps in different sectors in the second or third week of July.

"I think there will be an informal discussion before the note is formally brought to the Cabinet, but as I said the timeline is roughly the second or latest by third week of July. We should have revised FDI caps, revised FDI policy by the second or third week of July," he said. (ANI)

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