Chidambaram made the remarks on a day when the the rupee hit an all time low breaching the 66 mark to touch 66.24 against the dollar
"Despite differences between political parties we should work together towards economic policies.. We should work towards less restrictions in the economy," Chidambaram said in the Parliament.
He said the country needs more reforms to overcome the crisis.
"My basic instinct is that of a reformer. I know I will be contradicted and I respect that right of fellow MPs. We need more reforms. We don't need more restrictions," he said.
Chidambaram said the government will take every step to contain fiscal deficit at 4.8 per cent.
"Will do everything in my power to contain fiscal deficit at 4.8 per cent," he said.
"We must encourage manufacturing especially in power, steel, automobiles, electronic hardware and textiles. Every step will be taken to encourage manufacturing...We must encourage exports to rein in current account deficit," the Finance Minister said.
He said: "It saddens me that we are growing at 5 per cent."
Chidambaram said the nation cannot afford to grow at less than 8 percent.
The Bharatiya Janata Party (BJP) criticised Chidambaram and said he is an 'incompetent doctor'.
Lambasting the United Progressive Alliance (UPA) government and Chidambaram, BJP leader Yashwant Sinha said: "Let us go to the people now and let them take a decision on the government."
He said the government is an incompetent doctor who "doesn't inform the patients of the possible side effects of the treatment."
He said the government should go because they destroyed the economy.
Sinha also referred to policy paralysis in the government.
The rupee, which is partially convertible, traded at lowest on Tuesday and it crossed the all-time record low of 65.56 last week.
As the rupee continued its free fall, the share markets also tumbled. BSE Sensex fell by 590 points. Nifty closed below 5300 levels, losing 189 points.
--IBNS (Posted on 27-08-2013)