BJP, Left slam government over rupee depreciation

The BJP and the Left Wednesday slammed the government over the rupee's continued depreciation with the former demanding Prime Minister Manmohan Singh's resignation, while the Congress said the situation was serious but not a crisis.

The rupee slipped to 68.75 against the dollar Wednesday.

"The government has lost control over the economy completely ... they are helpless. The stock market is in free fall and rupee is in free fall," said Bharatiya Janata Party (BJP) leader Yashwant Sinha.

Former finance minister Sinha said the only thing that can stabilize the situation is for the government to resign and go for fresh elections.

"The prime minister is an economist and he has failed to control the Indian economy. He has no right to continue in his post if he is not able to control the economy," said BJP leader Shahnawaz Hussain.

Saying that the government has failed "miserably", BJP leader M. Venkaiah Naidu said: "It is a total mismanagement of economy and prime minister and finance minister must take the responsibility."

The Congress countered the charge, saying that the BJP demands the prime minister's resignation on every issue.

"The BJP has become impatient and demands the prime minister's resignation on anything and everything," Congress spokesperson P.C. Chacko told IANS.

Admitting that the sliding rupee indicated a "serious situation", he, however, said there was no "crisis" in the country.

Communist Party of India leader D. Raja blamed the mismanagement of the economy by the government for the rupee's fall.

"The government failed to address the issue at domestic level. It cannot give an excuse that other currencies too are falling," Raja told IANS.

Taking a dig at Finance Minister P. Chidambaram, Raja said "he thinks only he knows the economy. He is living in complacency".

On Tuesday, Chidambaram said the rupee had overshot its true level and that the phenomenon of depreciating currency value is being faced by other emerging economies also.