There is no need for pessimism as the ongoing temporary phase of economic slowdown will pass and money will flow back into India, Union Finance minister P Chidambaram said.

On the sidelines of a Crisil function on Tuesday, Mr.  Chidambaram asked investors not to become pessimistic about the Indian currency's declining value and promised that government would take more steps to boost capital inflows into the country.

He pointed out that India is the fastest growing economies among the large emerging economies, next only to China.

Speaking to reporters, he said, "I am confident that money will flow back into India.  Investors will find India a safe destination to invest.  And this temporary phase should pass.  There is no need for pessimism."

Last week, rupee slipped to a record low of 59.98 against the US dollar after US Federal Reserve chairman Ben Bernanke said that the government could slowdown its bond-purchasing program that was launched in wake of the global economic crisis to support the struggling economy.

But, Mr.  Chidambaram argued that Mr.  Bernanke's comments were completely misunderstood and that the rupee was very stable.

The finance minister also confirmed that the government would hike foreign direct investment (FDI) limits in many sectors like defense, multi brand retail, news channels, print media and stock exchanges to boost capital inflows into the country.