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Montek hints at buyback of shares

He exuded confidence that the Indian economy will turnaround soon as the government is planning several measures to kickstart the dormant capital markets. The government is in touch with Moody's Investor Service, which recently downgraded India to Ba2 from Baaa3, to press for a review of the rating. "The country's fundamentals are good; Moody's had gone wrong earlier, I hope they will go wrong this time also," he said.

The finance secretary announced the government's intention to offload its equity in prime public sector undertakings in favour of retail investors. The price, he said, will be lower than that of institutional investors. But the target of Rs 5 billion sought to be raised through disinvestment this financial year will be met, he said.

A plan to enhance foreign direct investment within a timeframe is also being sewn up. The recent sanctions have so far not stopped private capital flows, he clarified. He sought to dispel the impression that the downtrend in the economy is due to the sanctions, and said the general recession in Asia has affected the country's trade, though India's GDP has grown at a healthy 5.5 per cent.

He felt the sanctions, if continued on a long-term basis, could hurt the economy. But then, the government is in touch with countries upset by the nuclear tests, to explain India's rationale. "We are confident their views will change," he said.