Chidambaram updates FIIs on economy

Finance minister P Chidambaram after giving an update yesterday on the Indian economy and its growth prospects to top foreign institutional investors (FIIs) and fund managers, said FIIs had sought a meeting to know where the economy was headed.

The minister is understood to have allayed the concerns of the FIIs on retropsective taxation and also provided them some comfort on the implementation of GAAR.

In addition to spelling out the reform initiatives taken since September, Chidambaram also referred to the newly framed fiscal consolidation roadmap and the commitment of the government to stick to the plan.

According to Chidambaram, the recent reform initiatives would reverse the declining growth trend.

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

There were also indications that the Shome panel recommendations were discussed at the meeting. The government though was yet to take a call on the panel's recommendations on indirect transfers as also on General Anti-Avoidance Rules (GAAR).