Finance Minister P. Chidambaram on Thursday gave an update on the Indian economy and its growth prospects to top foreign institutional investors (FIIs) and fund managers.

“They (FIIs) wanted a meeting to know where the economy was headed. They wanted an update and I explained to them,” Chidambaram said after a nearly 30-minute meeting with the investors.

He is understood to have allayed the concerns of the FIIs on retrospective taxation and also provided them some comfort on GAAR’s implementation.

Besides spelling out the reform initiatives taken since September, Chidambaram also referred to the newly framed fiscal consolidation roadmap and the Government’s commitment to stick to this plan.

The recent reform initiatives will reverse the declining growth trend, Chidambaram is learnt to have assured the investors.

Among those who attended the meeting include the representatives of Blackrock, Goldman Sachs, Amansa Capital, T Rowe Price, and Bank of America Merrill Lynch.

There are also indications that the Shome panel recommendations were discussed at the meeting. The Government is yet to take a call on the panel’s recommendations on indirect transfers as well as on General Anti-Avoidance Rules (GAAR).

Chidambaram will embark on a week-long foreign tour beginning Thursday night to attend the G20 meeting at Mexico.

(This article was published on November 1, 2012)
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