No reversal of economic reforms, says PM

Says the govt will ensure that fundamentals of economy remain strong

Notwithstanding concerns over sliding rupee, Prime Minister Manmohan Singh on Friday ruled out reversal of reforms or resorting to capital controls to rescue the currency which he said fell on account of domestic as well as global factors.

Making a statement on the state of the economy in Parliament amid concerns over rapid depreciation of rupee, Singh said the country has to be ready for short-term shocks but the government will ensure that the fundamentals of economy
remain strong.
.  Will not meet rupee decline with capital control: PM

"We are faced with challenges but we have the capacity to deal with them,", he said, while seeking support of all political parties in this situation.

Breaking his silence on the decline of rupee, he said there "may be short term shocks to our economy and we need to face them. That is the reality of the globalised economy, whose benefits we have reaped".

There is no question of reversing the policies just because there is some turbulence in capital and currency markets, he said, adding the "sudden decline in exchange rate is certainly a shock, but we will address this through other measures, not through capital controls or by reversing reforms".

Not satisfied with the Prime Minister's statement, the Opposition parties including BJP, AIADMK, Left and SAD staged a walk out in the Lok Sabha.