Finance minister P Chidambaram said the RBI action to keep key rates steady are along expected lines and will infuse liquidity if necessary. "RBI will continue to deploy conventional and unconventional tools. It will manage finance, price stability along with sustaining growth. RBI has retained flexibility to act swiftly as and when necessary. RBI endorses MoF assessment of strong financial and economic fundamentals."

Chidambaram said the government will continue to take measures to moderate inflation and is closely monitoring FRBM target. He added that the final fiscal and revenue deficit may exceed estimates. "India's economic fundamentals are strong. We are affected by ripple effects of the global turmoil and it is essential to manage financial and price stability. If necessary we may have to adopt un-conventional and unorthodox measures."

According to FM, once the international situation is managed, markets will return to higher growth trajectory. He advises to remain calm, confident to ride the crisis out.

FM said investors must abandon fear. "Investors must stop taking cues from other markets. They are selling in utter panic and there is no reason to fear. Growth may slow down this fiscal but ultimately we will triumph."

CNBC-TV18 shares with domain-b, the verbatim transcript of  P Chidambaram's comments at a press conference following the RBI's annoouncement of the mid-year financial policy review.

I have seen the relevant portions of the Reserve Bank of India's (RBI) statement in particular paragraphs 95 to 114 and the section on monetary measures. As expected since many of the measures have been taken between 6 October  and 20 October.

RBI has not touched the repo rate, reverse repo rate, bank rate or the cash reserve ratio. This is along expected lines. However, RBI said that it will continue to use the LAF (liquidity adjustment facility) window flexibly. It has also said that it will infuse liquidity necessarily. So, this is on expected lines.

I wish to draw your attention to a couple of other aspects of RBI's statements. The first and the most important statement is to manage the trinity of financial stability, price stability and sustaining growth. RBI will continue to deploy both conventional and unconventional tools. This is an important statement. We cannot rely only on conventional measures. We would have to adopt, if necessary, unconventional and unorthodox measures.

Secondly, RBI maintains that the growth rate will be between the range of 7.5 per cent and 8 per cent, which is an important statement coming from the RBI. In particular, I wish to draw your attention to the portion where the RBI had said that, ''Our financial system is strong and healthy and our economic fundamentals are strong.

Once the global situation is managed and calm and confidence are restored, we will return to our higher growth trajectory.'' I said the same thing in the Lok Sabha and Rajya Sabha a couple of days ago. Prime Minister had made the same statement on Monday, there are some who scoffed at the statement including a section of media if I may add but I want to underline the fact that RBI endorses our assessment that our financial system is strong and healthy and our economic fundamentals are strong.

Throughout the statement, what is clear is that we are not the cause of the problem but we want to be part of the solution. We are affected by these ripple effects of the global crisis but it is necessary to remain calm and confident so that we can ride this crisis out.

Calm will return to the world markets and once calm returns, we will get back to our higher growth trajectory. But as I said, a monetary policy statement of the scheduled date is not the last word, RBI has retained the flexibility to act swiftly if necessary and I am confident that RBI will act swiftly as and when necessary.