Indian economy capable of beating any crisis: Chidambaram

The Indian economy could beat any crisis like it did in 1991, finance minister P Chidambaram today said, adding that reforms were necessary to ensure the ''sharp and continuing decline in growth'' was averted.

He added, an improvement in investment after the reforms would help growth recovery  to 8 per cent, even as it would be ''premature to talk about 9 per cent growth''.

Speaking at a PIB conference in the capital, Chidambaram said he planned to unveil a path to credible and feasible fiscal consolidation, after a government panel earlier in the day warned the country was on the edge of a fiscal precipice due to high subsidies.

In September, the panel had said India needed to slash fuel, food and fertiliser subsidies to curb a budget deficit that could hit 6.1 per cent of gross domestic product this fiscal year.

The minister reiterated that it was up to individual states to allow FDI in multi-brand retail brushing aside the controversy over the reforms as unnnecessary.

He added that the first draft of FDI in multi-brand retail was prepared by the BJP-led NDA government.