Finance Minister P Chidambaram has suggested a 10-point formula to revive the country's economic situation and sought cooperation from all quarters despite of ideological and political differences. He said the country needs more reforms, lesser restrictions and open economy.
Replying to a discussion on the country's economic situation in the Lok Sabha today, Mr Chidambaram said the option before the government is to allow NRI investments, FDI inflows and go for External Commercial Borrowings.
Outlining other measures, the Finance Minister expressed confidence that Current Account Deficit, CAD, will be contained at or below 70 billion Dollar this year and will be financed fully and safely. He said the fiscal deficit will also be contained at 4.8 per cent in the current fiscal. Mr Chidambaram said, the Government is doing everything to boost investment.
He said, more capital will be infused into public sector banks to extend agricultural loans to the maximum extent. Mr Chidambaram said, no stone will be left unturned to reep benefits of good monsoon and assured that gas allocated to fertilizer sector will be maintained. He underlined the need to encourage manufacturing in Power, Steel, Automobiles and Textiles sectors.
The Finance Minister emphasised that strenghtening exports is the durable and correct way to bridge the widening CAD. He also called for finding a way to resolve the impasse on coal, mining and land acquisition.
Earlier, initiating the discussion, Gurudas Dasgupta of the CPI said, the country is passing through economic crisis. He warned that the economic crisis of 1991 is not very far away if the government fails to take corrective measures to revive the economic growth.
Yashwant Sinha of the BJP criticized the government for its move to bring down gold purchases in the country to contain CAD. He said it has impacted the jewellery trade and crores of people have been rendered unemployed.
Bhakta Charan Das of the Congress said the government is committed to inclusive growth, adding that there is no need for panic over depreciation of rupee. Sharad Yadav of the JD(U) pleaded for augmenting irrigation facilities across the country.
