Govt to take steps to stimulate economy: FM

Finance minister Palaniappan Chidambaram said on Tuesday the government would take steps to stimulate the economy and the rupee would strengthen again once capital starts flowing in. "We will take steps to stimulate the domestic economy to compensate for the downside caused by the downturn in the world economy," he told the World Economic Forum's India Summit. “There is pressure on rupee; in a month or two the direction of capital flows can reverse,” he added. “India will record very satisfactory growth this fiscal; growth will bounce back next year,” the finance minister said. “We will continue to strike a balance between growth and inflation but the bias now is towards stimulating growth.” Chidambaram also said he was open to examining suggestions on cut in excise duty rates if any sector faces problem. He called upon hotel industry, airlines, real estate firms and passenger-vehicle makers to cut prices. Chidambaram added the country could miss its annual export target of $200 billion for this fiscal year as the slowdown in developed nations has trimmed overseas demand.