‘Cannot be denied, we face a difficult economic situation’
31 Aug 2013 4:07 AM IST
With a steeply declining rupee and rising oil prices casting a shadow on the Indian economy, Prime Minister Manmohan Singh said on Thursay that the country is faced with a difficult economic situation for which some domestic factors,
too, are responsible.
‘It cannot be denied that the country is faced with a difficult economic situation,’ said Singh after Rajya Sabha Leader of the Opposition Arun Jaitley sought his response on the rupee hitting a life-time low. ‘There are several causes (for the economic woes). I do not deny some domestic factors too are responsible,’ he said.
Listing some of the external factors that have impacted the rupee and Indian economy, Singh said that the US monetary stance and problems created by tensions in Syria and its ‘inevitable consequences on oil prices’ have played their role. ‘We have to reckon with these uncertainties,’ he said, adding that he needed 'some time to reflect' on these.
Earlier, when the House met for the day, Jaitley raised the issue of the depleting value of the nation’s currency, which has fallen 20 per cent against the dollar this year and breached the 68 mark. He said there is ‘panic’ in the country as people don't know where the rupee devaluation will stop.
Inflationary pressures will be twice as rising food prices will be coupled with imported inflation in the form of rising international oil prices, he said. Manufacturing growth has been low while the services sector has seen expansion drop from 10 to 7 per cent. ‘In a situation
like this, what is the Government going to do?' he said.
Jaitley dubbed Finance Minister P Chidambaram's 10-point plan ‘merely economic theory’.
too, are responsible.
‘It cannot be denied that the country is faced with a difficult economic situation,’ said Singh after Rajya Sabha Leader of the Opposition Arun Jaitley sought his response on the rupee hitting a life-time low. ‘There are several causes (for the economic woes). I do not deny some domestic factors too are responsible,’ he said.
Listing some of the external factors that have impacted the rupee and Indian economy, Singh said that the US monetary stance and problems created by tensions in Syria and its ‘inevitable consequences on oil prices’ have played their role. ‘We have to reckon with these uncertainties,’ he said, adding that he needed 'some time to reflect' on these.
Earlier, when the House met for the day, Jaitley raised the issue of the depleting value of the nation’s currency, which has fallen 20 per cent against the dollar this year and breached the 68 mark. He said there is ‘panic’ in the country as people don't know where the rupee devaluation will stop.
Inflationary pressures will be twice as rising food prices will be coupled with imported inflation in the form of rising international oil prices, he said. Manufacturing growth has been low while the services sector has seen expansion drop from 10 to 7 per cent. ‘In a situation
like this, what is the Government going to do?' he said.
Jaitley dubbed Finance Minister P Chidambaram's 10-point plan ‘merely economic theory’.
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