Karunanidhi urges PM to resolve economic impasse

Import of crude and gold as reasons behind the high CAD is not the truth, says the DMK boss

DMK President M Karunanidhi, whose party is a former UPA ally, today urged Prime Minister Manmohan Singh to resolve the current economic impasse through new strategies, if warranted.

'Manmohan Singh steered the economic reforms 20 years ago. If old economic tactics could not bear fruit, new strategies should be employed and the situation should be resolved very soon,' Karunanidhi said hailing Singh as one endowed with 'complete knowledge of economy.'

Pointing out that the government cited excessive import of crude and gold as reasons behind the high Current Account Deficit, the DMK chief said that factor alone is not the truth.

'During 2004-05, the import of capital goods was to the tune of 2550 crore USD. Now, 58700 crore USD worth capital goods are being imported. Only due to factors like these, the rupee is facing an unprecedented fall,' he said.