Says CAD will be below $70 bn this year
Prime Minister Manmohan Singh today said that the rupee fall was a matter on concern but the government will not meet the rupee decline with capital control measures.
The rupee's tumble is a "matter of concern", he said, but is part of a needed adjustment due to India's large current account deficit.
The depreciation will have a positive impact on export competitiveness in coming months, he told the Parliament.
Singh said the current account deficit was "unsustainably large" and to remedy this there needed to be a reduction in demand for gold and oil imports.
He added that CAD will be below $70 bn this year.
Singh said that government will do whatever is needed to rein in fiscal deficit at 4.8%.
Singh said that rupee depreciation will see upward pressure on inflation, but added that RBI will work on containing it.
PM added that government will do more to improve the fundamentals of the economy. But he said that he expected H1 GDP growth to be relatively soft.
Prime Minister Manmohan Singh today said that the rupee fall was a matter on concern but the government will not meet the rupee decline with capital control measures.
The rupee's tumble is a "matter of concern", he said, but is part of a needed adjustment due to India's large current account deficit.
The depreciation will have a positive impact on export competitiveness in coming months, he told the Parliament.
Singh said the current account deficit was "unsustainably large" and to remedy this there needed to be a reduction in demand for gold and oil imports.
He added that CAD will be below $70 bn this year.
Singh said that government will do whatever is needed to rein in fiscal deficit at 4.8%.
Singh said that rupee depreciation will see upward pressure on inflation, but added that RBI will work on containing it.
PM added that government will do more to improve the fundamentals of the economy. But he said that he expected H1 GDP growth to be relatively soft.
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