MUMBAI, DEC 6: Union Finance Minister P Chidambaram today said the fundamentals of economy were extremely sound despite reports to the contrary in newspapers."Inflation is at its lowest, current account deficit is less than 1.5 per cent, and reserves are high at US $ 29 billion,`' he said. Calling the MTNL issue the Most Tempting New Listing, he said a communcations revolution was underway. "Makers of televison are part of this revolution . the TV industry will grow at a rapid pace," Chidambaram asserted.He appreciated the Cetma for their support to MRP and said taxes would come down when revenues were sufficiently large. "Taxes must be low, efficiently levied and collected. But, the tax payer should also be honest. Large revenues would even facilitate the removal of certain taxes,'' he said while delivering the inaugural address at a seminar on `Strategy for Growth - Create Efficiency' organised by the Consumer Electronics and TV Manufacturers Association (Cetma).Speaking against octroi, he said he had always held it to be obnoxious in a nationally integrated economy. Regarding the tax on credit cards payments in Maharashtra, he said, "One can tax goods and services but not financial transactions. It is not a good rule for fiscal policy."Urging the industry to tap the huge Indian market of 190 million households, he said it could double, triple and even quadraple in the next few years. "I'm glad in this industry Indian and foreign brands are competing with each other. Competition alone will make you efficient," he said, adding, "In the globalisation scenario it is difficult to keep foreign competition out." The key factors driving the consumer goods industry in the coming years would be increasing urbanisation and nuclearisation of families, apart from the communications revolution, he pointed out.Also speaking on the occasion, Secretary, Department of Electronics, Shyamal Ghosh, agreed there was need for rationalisation of duties and overhaul of import export procedures.
