New Delhi, July 19 () : Indian economy was going through a rough period, said Prime Minister Manmohan Singh today and assured the industry that UPA government will do all it can to bring about a rebound.
Singh said that rupee declined due to widening Current Account Deficit (CAD) and global situation and hoped that the measures taken by the Reserve Bank to stop fall of Indian currency would be reversed after the easing of speculative pressure on the rupee.
As regards the Indian economy, Singh said though basic fundamentals are sound and stable, the growth rate in the current financial year ending March 2014 would be lower than 6.5 percent that was estimated in the Budget in February.
Singh told Assocham, industry body at the annual meet that India need not have negative sentiments and even other countries are facing similar situation but his Govt will bring economy to recovery. He said when things are bad, then the Government should interfere to correct the situation.
With general elections due in May and the Indian rupee hitting bottom low, the Prime Minister claimed that UPA coalition has a track record any government can be proud of and taking a dig at the opponents, he said that out of many years of UPA rule, they pick up one bad year, which makes for good television story, but it is a distorted picture.
More liberalization of FDI was to come. Yashwant Sinha took a dig at PM saying that everybody knows that economy is in a bad shape but he has not disclosed how it can be rectified and termed PM as promising PM since he gives lots of promises.
RBI’s move to increase short-term interest rates has been termed by economists as India growth been downgraded. PM said that the RBI’s move will not affect long-term interest. UPA image in the market got hit with two big overseas investment projects being scrapped.