The Finance Minister Mr. P. Chidambaram has said that economic growth is expected to pick up in the second to fourth quarter. He however added that it may remain flat in the first quarter.

Addressing a press conference in New Delhi this evening Mr. Chidambaram said that growth revival is the focus of the government, results of some steps taken are visible while more challenges have to be overcome. He said, the fiscal deficit will be contained at 4.8 per cent and the Current Account Deficit will be 70 billion U.S. dollars. It will be fully and safely financed.

Mr. Chidambaram said, recent measures to quell speculation in rupee will be reversed once stability returns. He said, all emerging market economies appear to be affected by currency volatility. The Finance Minister also said, the rupee is undervalued and said capital inflows will in due course correct the position.

Terming the panic that seems to grip the currency markets as unwarranted pessimism, Finance Minister Mr. P.Chidambaram clarified that there was and there is no intention for the government to introduce any type of capital control. The finance minster said, efforts continue to enhance capital inflows by about 11 billion U.S. dollars.