Ahead of the much-awaited monetary policy update by the US Federal Reserve on Thursday, India's Finance Minister Arun Jaitley said the country's economic fundamentals will be kept strong through appropriate policy interventions to meet eventualities and keep attracting investments.

"In such a situation where there is turmoil almost by the day in global markets, we are trying to make the fundamentals of our own economy strong so our ability to resist these changes can substantially improve," Jaitley said.

"Without investment, there is going to be no additional economic activity," he told the India Economic Convention organised here by the Federation of Indian Chambers of Commerce and Industry (FICCI).

The remarks come just ahead of the Federal Open Market Committee of the US meeting on Thursday to review the interest rate regime, which the global financial markets, including India, are watching very keenly.

If there is a hike in interest rates -- for the first time since 2006 -- many analysts fear there could be a flight of capital away from emerging market economies like India to the US, since investments there could become more attractive.

Jaitley also said that with the stated objective towards ease of doing business, all tax disputes will be resolved over the next few days.

"Since May 2014, a number of tax disputes have been put to rest since the BJP government took office," the finance minister said, alluding to the issue of retrospective taxation on capital gains.

"We are trying over the next few days itself (to look at pending disputes) so that many others can be put to sleep either by a judicial resolution or an executive resolution," he added.

Speaking at the event, Minister of State for Finance Jayant Sinha said that India has in place the necessary mechanisms to deal with the US Federal Reserve's monetary policy action, that could trigger its first rate hike since 2006.

"Whether it is the US Fed raising rates or other macro events, the best way to deal with it is to build multiple layers of defence. I think we have now put them in place," Sinha told reporters.

He said Reserve Bank of India (RBI) Governor Raghuram Rajan was also well prepared for this.

"Because we have built those layers of defence -- whether it is the fundamentals of our economy, our foreign exchange reserves, or whether it is our ability to access various markets -- we can deal with these types of macro events."

The Federal Open Market Committee of the US central bank is scheduled to meet later on Thursday to review the interest rate regime -- an event keenly watched by the global financial markets, including India.

A rate hike there, it is feared, could trigger outflow of funds from emerging markets to the US.