India working on roadmap to recovery: Chidambaram

Finance Minister P Chidambaram today announced plans for fresh action on the economic front, including measures to bring clarity on taxation to restore confidence among domestic and foreign investors, as part of a larger plan to revive the economy.

The focus of the measures will be on fiscal consolidation and controlling inflation, he said, adding that this would involve fiscal corrections and hence may impact finances of the higher income groups.

Chidambaram was addressing the media for the first time after he reassumed charge as finance minister.

''We intend to unveil, shortly, a path of fiscal consolidation. I would like to make it clear that the burden of fiscal correction must be shared, fairly and equitably, by different classes of stakeholders. The poor must be protected and others must bear fair share of the burden,'' Chidambaram said.

The measures would also involve expenditure cuts while at the same time boosting revenue earnings so as to reduce the government's fiscal deficit.

The aim is to raise the level of investment to 38 per cent of the country's gross domestic product (GDP) and this would require a similar increase in the level of savings, he said.