FM for concrete steps to ward off impact of US tapering

The Reserve Bank, Sebi and other regulators should take concrete measures to ward off any adverse impact of the likely tapering of monetary stimulus by the US Federal Reserve early next year, Finance Minister P Chidambaram said today.
The Minister, according to officials, will be meeting representatives of foreign fund houses over the next two months to attract fresh investments and ensure that they remain invested in the country.
While addressing a meeting of the Financial Stability and Development Council (FSDC), Chidambaram said the regulators should use the "opportunity available due to postponement of the reversal of the monetary policies in advanced economies to further address the macroeconomic imbalances."

The regulators, he said, "should take all possible concrete measures to avoid any adverse impact of tapering off of the quantitative easing of the US on the Indian economy."
Tapering, which refers to the gradual withdrawal of the USD 85 billion a month bond purchase programme, was deferred by the US Federal Reserve in September. The partial shutdown of the US government earlier this month and latest jobs data have raised expectations the programme will continue.
The easing of the stimulus programme, which is expected in early 2014, will have a bearing on the global economy and impact fund flows to emerging economies, including India.

The FSDC meeting, which was attended by Sebi Chairman U K Sinha, RBI Governor Raghuram Rajan, IRDA chief T S Vijayan and FMC Chairman Ramesh Abhishek, discussed various steps to attract foreign investment and streamline procedures.
Over the next two months, sources said, stock exchanges will organise meetings between the Finance Minister and large sovereign wealth funds, pension funds and institutional investors to woo investments.