The finance minister, P Chidambaram said that India’s economy maintains a sound health and the investors need not to afraid. He was addressing the media persons after the meeting of union cabinet on Wednesday. The government would provide more liquidity in the market to ease the financial position of country. Finance minister said the Indian banks maintain a strong balance sheet and deposits of people are safe with Indian banks.
 
He said that the government knows the tight liquidity conditions in the country and keeping a vigil on the situation. The Reserve Bank of India has taken various steps to galvanize India from the adverse impacts of global slowdown. The apex bank would induce more liquidity in the market if needed. It is to be noted that the liquidity crisis is a major reason of slowdown in US and Europe financial system.

Mr. Chidambaram also hoped that the Indian economy would grow by 8 per cent for the current fiscal. The country witnessed a gross domestic product (GDP) growth rate of 7.9 percent first quarter. It is sufficient to judge the sound health of Indian economy. Commerce & industry minister Kamal Nath and Planning Commission deputy chairperson Montek Singh Ahluwalia also wanted investors to be confident and have faith in the government.