PM to make statement on current economic situation in Parliament today

Facing an attack over the economic situation amid a sliding rupee, Prime Minister Dr. Manmohan Singh told the Parliament on Thursday that he would make a statement on the state of the economy on Friday.

"It cannot be denied that the country is facing a difficult economic situation... I do not deny that there are some domestic factors. But there are also international factors arising out of the change in the US economic stance," Dr. Singh said.

"There are also problems created due to tensions that are on the horizon in Syria and they have inevitable consequences for oil prices. I will be happy to make a statement tomorrow (Friday)," he added

Leader of Opposition Arun Jaitley raised the issue as soon as the Rajya Sabha met for the day, and demanded a statement by the Prime Minister outlining the steps that the Congress-led UPA II Government is contemplating to tackle the present economic situation.

He then took a dig at Finance Minister P Chidambaram's 10-point suggestions, saying it was just a "discourse in economic theory" when the country was actually moving towards stagflation.

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.

Chidambaram also underlined the need to encourage manufacturing in sectors like power, steel, automobiles and textiles.

"We must increase production of electronics and textiles. We are importing things which we should not have imported. India can be strong only if we have a strong manufacturing economy," he said.