Finance Minister Pranab Mukherjee on Friday said that although government is taking all the necessary actions to tame inflation but it does not had magic lamp to bring down inflation immediately.

Reserve Bank has also stepped forward to control the inflation by contracting the monetary policy. RBI has increased both short term lending (repo) and borrowing (reverse repo) rates by 25 basis points in its third quarter monetary policy review on January 25, to wipe off the excess liquidity from the system.

Further government has banned the exports of onions and waved import duty. The prices of onion rose by over 130 per cent in the third week of January but recently they have moderated.

Finance Minister Pranab Mukherjee said that India is a safe place to invest. The fundamentals of the Indian economy are strong and stock markets should be seen in the context of developments around the globe. He said that it is expected that Indian economy will grow by 8.5% this fiscal year.