BJP critical of UPA's handling of Indian economy

Taking potshots at the Centre for its 'inept handling' of the Indian economy, the Bharatiya Janata Party (BJP) on Thursday said the people have lost trust in the Congress-led UPA Government due to corruption and instability.

BJP chief spokesperson Ravi Shankar Prasad said that his party would raise this issue in the Parliament and seek an explanation from the Centre.

"With the kind of gloom being depicted by the Prime Minister and Finance Minister, why isn't Manmohan Singh saying anything? How much more will the Indian economy fall? People will lose their jobs. When Indians are not investing in the country then why would foreigners do so?" asked Prasad.

"Due to corruption and instability in the government, people have lost trust in it. This is going to spoil India's name in the global market," he added.

Meanwhile, Biju Janata Dal (BJD) leader Jay Panda said that the devaluation of the rupee would put pressure on India's oil imports and hence increasing the inflation in the country.

"The real crisis is actually just the beginning because with the rupee devaluing so much and with the vast majority of our fuel is imported petroleum products, inflation is going to be hit very badly in the next coming few weeks and months. So, I think the real crisis is still ahead of us," said Panda.

"These are the consequences of policy choices that this government has made and it was warned by many people and they have created this mess and it is going to be very difficult to get out of it," he added.

Parliamentary Affairs Minister Kamal Nath, however, said that the government was working round the clock to come up with a solution to counter this slowdown.

"There is no doubt that this is a very serious subject. The government is having discussions about the state of the economy so that we can find a solution to this problem," he said.

Prime Minister Dr. Manmohan Singh today said it cannot be denied that the nation is facing a difficult time, and attributed the present economic situation to several domestic and international factors.

Dr. Singh, who was responding to demands by several opposition members in the Rajya Sabha, said the situation in the US and the tensions in Syria have inevitable consequences on the oil prices.

The Prime Minister will make a statement in Parliament on Friday on the country's economic situation.

The rupee today recovered from its all-time low of 68.75 to the dollar, rising 170 paise to Rs. 67. 10 against the dollar in early trade.

The rise was attributed to fresh selling of the US currency by exporters and banks.

The Nifty rose 0.6 per cent while benchmark 10-year bond yields fell 15 basis points to 8.81 per cent.

The rupee plunged to a new record low of 68.75 per dollar yesterday trade on persistent dollar demand from banks and importers due to further fall in equity market amid rise in crude oil prices.

Finance Minister P. Chidambaram had earlier on Tuesday suggested a 10-point formula to revive the country's economic situation, and sought co-operation from all quarters despite ideological and political differences.

Chidambaram, who was replying to a discussion on the country's economic situation in the Lok Sabha, said the country needs more reforms, lesser restrictions and an open economy.

The Finance Minister said the fiscal deficit would be contained at 4.8 percent of the GDP even after doling out subsidies for the implementation of the Food Security Bill.

He said the government is doing everything to boost investment, and also underlined the need to encourage manufacturing in sectors like power, steel, automobiles and textiles.