NCP pitches for dialogue with opposition to tackle economic crisis

NCP has emphasised need for taking some bold measures to firmly deal with situation, to protect sentiments of consumers, investors

The Nationalist Congress Party (NCP), the United Progressive Alliance's important constituent, has made a strong case for a dialogue, instead of a confrontation, with opposition parties to effectively tackle the challenges faced by the country in the wake of a rapidly falling rupee, increasing current account deficit and inflation.

Besides, the NCP has emphasised the need for taking some bold measures to firmly deal with the situation, to protect the sentiments of consumers and investors. NCP chief and Union Agriculture Minister Sharad Pawar made suggestions in this regard informally to Prime Minister Manmohan Singh last week.

“It is a fact that the rising fiscal deficit, increasing current account deficit, falling value of the rupee and Sensex, and rising inflation are matters of serious concern. However, our party chief is of the view that the present crisis can be converted into an opportunity. The government can consider concrete steps. For that, the government could explain to the opposition the present situation, its leading reasons and the measures so far taken. It is better to seek the opposition's cooperation instead of confrontation to take the country forward,” an NCP leader, who did not want to be named, told Business Standard.

“Members of industry and business, in particular, have raised an alarm on the burgeoning power shortages in the wake of inadequate coal and gas. Besides, an embargo on the mining of essential raw materials is resulting in imports at huge cost. They are also concerned over the poor rating by international rating agencies, which might induce foreign capital to shy away from India,” the leader added. He said Pawar had made the suggestions after he had received feedback from a cross section of industry.

Furthermore, Pawar has also indicated the government would have to increase subsidies for the implementation of the food security scheme if farmers get a fair and an economic value for agricultural produce.