Stating that the rupee value is being fuelled by steep inflows of foreign funds, he said: "The rupee is in a zone which is not (a) comfort zone at the moment. We are constantly monitoring the situation... We must find ways to manage competitive exchange rate without hurting investments."

Speaking at the Hindustan Times Leadership Summit in New Delhi, he said as investors are getting very good returns "I don't believe that they are waiting to take their money out."

As long as foreign investors find India attractive, "there is no reason to conclude that money will flow out...this defies common sense," the finance minister said. Referring to recent spurt in foreign investment, he said the country is having problems in handling copious flow of funds.

However, "This is a new situation... We are not alarmed by it. We will gain mastery over managing the situation," he said. According to RBI weekly bulletin, foreign exchange inflows during the week-ended September 18 zoomed to $11.87 billion, as against $3.70 billion in the previous week.

Fuelled by the steep inflow of foreign funds, the Rupee has pierced the Rs 40 to a dollar mark, recording a high of almost 11 per cent since March.

Chidambaram said the Indo-US nuclear deal would open more doors for increasing the availability of energy. However, even if the government fails to pursue the 123 agreement successfully, it will not affect growth, he added.

In an oblique reference to the Left as well as the BJP, he said in order to make India a strong and prosperous country, "we shall not make for ourselves any ideology. We shall not make wrongful use of any religion for no religion will tolerate anyone misusing it."

Stating that there has been no slow down in investment, Chidambaram said: "There was some slow down in certain sectors, but that is a function of demand and seasonal factors."

Without naming reforms in insurance, banking and pension sectors, he said barring the three bills, the government is going ahead with reforms process through executive actions or legislations.

"We are indeed holding back some bills for discussion. ...It is only a matter of time that the bills which are stuck will become unstuck," Chidambaram said, adding, "We will not compromise on principles, we will compromise on time."

Stating that the country could sustain nine per cent growth rate, Chidambaram said: "I don't want to look any longer at numbers like six per cent, which belongs to the past."

He also emphasised that the country needs high growth rate for the next 20 years to wipe out poverty. Replying to a question pertaining to comments by late Prime Minister Rajiv Gandhi that only 15 paise out of a Rupee spent reach the poor, Chidambaram said: "Governance has improved and a large part of money spent is reaching the beneficiaries."