Drawing flak over policy inaction, Prime Minister Manmohan Singh today assured investors that his government will fix policy impediments in the way of foreign investments and trim twin deficits to put the country back on high growth trajectory. He asked political parties to lend support to the UPA regime in this regard which will also return the rupee value against the dollar to a more stable path.
Singh dropped hints that there could be a Cabinet reshuffle and some new partners could join the UPA, but refused to divulge who will be the new Finance Minister after Pranab Mukherjee moves to the Rashtrapati Bhawan.
The prime minister said Trinamool Congress is still part of the UPA and he has not given up hopes that it will support Pranab Mukherjee's candidature for the president's post.
He refused to agree with those claiming that stagflation has hit the Indian economy. Returning from a week long visit to the G-20 summit in Mexico and the Earth Summit in Brazil, he told reporters that events of last couple of days had convinced him that there were no international solutions to the problems of India, given its size and diversity.
"So, it is obligatory on us (to address our problems) and here I would urge all political parties to work with the government to restore the momentum of growth that the country is capable of and which the country needs."
Refusing to give details, Singh said his government will address the issue of high fiscal deficit and current account deficit to restore the momentum of growth.
"We need foreign investments, both portfolio and direct. If there are any obstacles which come in the way and if there are any policy impediments, we will address those problems effectively and credibly," Singh said in reply to a query of retrospective amendments to Income Tax act, but did not elaborate.
He assured the countrymen that the government is well equipped to meet the extreme situation of semi-drought.