Chidambaram takes stock of economic situation

With the rupee crossing 62 against the dollar, Finance Minister P Chidambaram on Monday met senior officials of various departments to take stock of the current economic situation and deliberated on steps to improve it.

The three-hour-long meeting was attended by Secretaries of departments of Revenue, Expenditure, Financial services and Disinvestment.

Sources said the Finance Minister took stock of the functioning of various departments and sought suggestions from officials.

The agenda for next three months was discussed, another source said.

The meeting comes in the backdrop of rupee touching an all time low of 62.82 to a dollar and the stock markets too witnessing a decline.

“It was a performance assessment and way forward,” a source said.

The Minister would be meeting the Department of Economic Affairs on Tuesday.

To restrict the outflow of foreign currency, the RBI had on August 14 announced stern measures, including curbs on Indian firms investing abroad and on outward remittances by resident Indians.

The central bank reduced the limit for overseas direct investment (ODI) by domestic companies, other than oil PSUs, under the automatic route from 400 per cent of net worth to 100 per cent. Higher levels of ODI would now need prior approval from RBI.