We need to reduce the import of gold, demand for petroleum products: PM

Prime Minister Dr. Manmohan Singh said on Friday that there is a need for reducing the import of gold and the demand for petroleum products, and added that his government's prime concern is to look for ways to curb the current account deficit as well as reducing demand.

Addressing the 92nd annual session of trade lobby Assocham at Vigyan Bhavan here, Dr.. Singh said: "We are committed to bringing the current account deficit under control."

Asserting that the economic slowdown is a serious challenge for the economy, Dr. Singh said that the most immediate cause of worry is the volatility in the foreign exchange market.

"The most immediate cause of worry is volatility in the foreign exchange market. We need to reduce the import of gold and the demand for petroleum products," he said.

He said that the impact of initiatives taken by the government will be felt in the second half of the current fiscal.

"Economic growth in the current fiscal likely to be lower than 6.5 per cent estimated at the time of budget," he said.