Finance Minister P Chidambaram has said the downturn in Indian economy was temporary and growth will return to 8 per cent in two years. He asserted that India can absorb 50 billion US Dollars foreign investment annually.
Acknowledging the largeness of the current account deficit (CAD) at around 5 per cent of GDP in 2012-13, he said the government had no timelines or targets in mind for bringing it down. He expressed hope that softening of oil prices will help bring down CAD.
Addressing the international media in New York, Chidambaram said the government was reviewing sectoral FDI caps as many of them were imposed at different points of time.
Chidambaram, who met investors in Canada and US this week, said Indian downturn was a temporary phenomenon.