JULY 19- Prime Minister Manmohan Singh on Friday assured the industry that government is taking action to improve the economy.
“I know that business is deeply concerned about the slowdown in the economy,” Manmohan Singh said addressing the annual general meeting of industrial chamber ASSOCHAM.
“When things are going bad, as they seem to be at present, it is the responsibility of the government to become proactive. The biggest concern is volatility of foreign exchange,” he said.
The prime minister said that the situation arose as large amounts of funds were withdrawn from the market, which led to the rupee’s depreciation.
“We are committed to bringing down the current account deficit, from both demand and supply side,” he added.
Highlights of his speech:-
– When things are going well, governments should interfere as little as possible.
– When things are bad, it is the govt’s responsibility to act.
– Most important cause of worry is the recent volatility in global market.
– RBI’s steps are not meant to be a signal for long term interest rates.
– Forex volatility due to global markets. India affected more because of high current account deficit.
– We have taken measures to control the demand for gold and they have had some effect.
– Loss on sale per litre of diesel was coming down, but this has been offset by the depreciation of rupee.
– Looking ahead, the rupee depreciation will help India to compete effectively with other countries.
– I hope industry is thinking seriously on how to become more competitively.
INDIA TODAY
