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Rupee sinking due to unexpected external developments: PM
By: Tupaki Desk | 30 Aug 2013 6:44 AM GMTExpressing concern over successive depreciation in the value of the Indian rupee, Prime Minister Manmohan Singh Friday said this was an outcome of external developments and promised measures internally to address the situation.
In a bid to lift sentiments in the currency markets towards the Indian currency, he also assured that there would be no measures on capital controls.
"The depreciation in the value of the rupee since end of May is a matter of concern," the prime minister told the Lok Sabha. "What triggered the sharp depreciation in rupee was the market's reaction to unexpected external developments," he added.
"Clearly, we need to reduce our appetite for gold, economise the use of petroleum products and take steps to increase our exports," he said. At the same time, the fall in rupee's value was also good to some extent as it makes exports competitive.
The prime minister also assured that growth, which has slipped, will also pick up, even as everything would be done to contain the fiscal deficit at 4.8 percent of the gross domestic product (GDP).
In a bid to lift sentiments in the currency markets towards the Indian currency, he also assured that there would be no measures on capital controls.
"The depreciation in the value of the rupee since end of May is a matter of concern," the prime minister told the Lok Sabha. "What triggered the sharp depreciation in rupee was the market's reaction to unexpected external developments," he added.
"Clearly, we need to reduce our appetite for gold, economise the use of petroleum products and take steps to increase our exports," he said. At the same time, the fall in rupee's value was also good to some extent as it makes exports competitive.
The prime minister also assured that growth, which has slipped, will also pick up, even as everything would be done to contain the fiscal deficit at 4.8 percent of the gross domestic product (GDP).
