According to Chidambaram, neither there was any secret behind the forecast nor is there any ‘mantra’ for this healthy economic growth. He attributed the developments to the high foreign exchange reserves of over $250 billion and the steady flow of FDIs into the country. Heavy foreign investments and domestic environment conducive for industrial progress are responsible for the turnaround, he said.

The steady capital inflow to India has helped the country to have such a large foreign exchange reserve, he opined. Meanwhile, official reports suggested that Indian achieved 9.3 percent economic growth during the 206-07 fiscal. Hence, the Finance Minister said that if any nation’s GDP stood at 35 percent and there was a steady flow of capital along with a sound labor force, there is bound to be significant economic development.


Talking about the ongoing armed conflict in neighboring Sri Lanka, the Finance Minister warned that if the situation was allowed to continue the crisis would only deepen giving rise to apprehensions of divisions amongst communities. And in such a situation, it would be even more difficult to broker peace among the warring sections, he opined.

Observing that neither party would gain from such conflicts, Chidambaram stressed on the need to forge peace immediately and at all costs.  Unless, this is done Sri Lanka’s economy too was likely to take a severe beating. The Finance Minister, however, ruled out the possibility of India’s intervention in the conflicts, saying that the country favored a peaceful negotiation to end the crisis.