Yashwant Sinha asks for early polls to bail out country from economic crisis

Bharatiya Janata Party (BJP) leader Yashwant Sinha on Thursday called for early elections to bail the country out of the ongoing economic crisis with the rupee free falling to record lows. Sinha also accused the ruling UPA-led Government and the Reserve Bank of India (RBI) of implementing counter productive policies without being in understanding with each other.

"I would like to reiterate what I have said earlier that because this government has lost control, and everyone has lost faith in this government-therefore, the only option before this country is for fresh elections. Let there be a new Government in Delhi in the next few months, which will take on the responsibility of calming the markets and bringing the economy back on the rails," Sinha said.

"I have said earlier that the government has completely lost control over the economy. The devaluation of the rupee is going to have very, very adverse impacts on our economy. Everybody seems to have lost confidence. Nothing is going to happen. Any step that the Government takes becomes counter productive. Any step which the RBI takes becomes counter productive. The RBI and the Government are working at cross purposes-there is a complete lack of understanding between the two organizations," he added.

Sinha also said that he expected that maybe the value of the Indian currency would reach Rs. 65 against the dollar by the end of the year, but did not see foresee the sudden tumble of the rupee. "Now, we have reached 65, or breached the 65 level, in a rapid succession and within a few days only. There are observers of the scene, who are saying that we will reach 70 very soon. All of this is disastrous for the Indian economy," Sinha added.

On Thursday, the rupee touched its all-time low of Rs. 65.50 against the U.S. dollar.