The Hindu Business Line : Chidambaram for `measured response' to market swings

The Finance Minister, Mr P. Chidambaram, with the Chairman and Managing Director of NSDL, Mr C. B. Bhave, at the launch of Tax Information Network in Mumbai on Friday. - Paul Noronha

Mumbai , July 22

THE Union Finance Minister, Mr P. Chidambaram, said here today that the uptrend on BSE Sensex and Nifty were reflections of the current potential of India's economy.

Referring to the BSE that hit an all-time high today, he asked the market players to be `measured' in their response to the market movements. He said that market players were currently behaving in a responsible manner.

"We urge the market players to be measured in their response to the markets, which by definition will rise and fall. Stakeholders should not show undue exuberance or despondency to the market, which by definition, will rise and fall," Mr Chidambaram said.

The ongoing uptrend in the markets reflected the current potential of the Indian economy, which, he said, had the potential to do better. The economy will do better next year than it did this year, he said.

The Minister was addressing a gathering after inaugurating the national roll-out of Tax Information Network (TIN), as part of the Income-Tax Department's initiative to modernise the existing system of tax collection, processing, monitoring and accounting of direct tax.

Later, while interacting with the media, he said there was enough liquidity in the market.

Mr Chidambaram said he had a meeting with the RBI Governor during the day. Responding to questions on impact of the Chinese currency revaluation on Thursday, he said there would be no major impact on the Indian economy and the rupee's exchange rate. This was not new to India, he said.

Referring to TIN, he said there were likely to be `problems and hurdles' before the system stabilised. The online tax accounting system (OLTAS) was yet to reach its goal of becoming totally error-free and till such time would zero in on banks, then the branches and finally the staff to iron out the glitches, he said, adding that the next phase where TDS went online would ensure it was no longer a `tedious' process.

Mr Chidambaram said it was amazing that there were only some 80,000 individuals in the country who were in the Rs 10 lakh-plus income bracket as any good marriage reception in Mumbai could throw up at least 2,000 or more.

Once RBI comes out with annual information report scheme later this month, it would be easier to keep track of those going in for high value transactions, he said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page