"The RBI and government of India are taking necessary steps as we have enough capacity and resilience to withstand the situation", he said in New Delhi. The cabinet will take a decision on the hike in petrol and diesel prices after consulting the ministry of petroleum, he said.
On the interest rate, he said there is no likelihood of the rates going up in the medium term. He said though the rising crude prices are a cause of concern, the recent inflationary figures, however, signal a further decline.
The Finance Minister said the state governments must implement VAT as over 130 countries have benefited from such a regime.
"Why should India be singled out?" he asked. He also requested the traders to give up their protest against VAT since "it is an effective tax mechanism".
He said two more states will switch over to VAT from Friday and hoped the reluctant ones would also implement the regime soon.