The Prime Minister has said the country’s growth will pick up in the second half of the current fiscal and sought cooperation from all sections to support the government in its efforts to revive the economy.

Making a statement in both the Houses of Parliament today, Dr.Manmohan Singh said the government decisions in reviving the stalled projects will start bearing fruit. He said the full effect of the growth-friendly measures will lead to higher growth, particularly manufacturing.

He said exports are also starting to look up as the rest of the world is improving its growth. He assured Parliament that the government will do everything possible to contain fiscal deficit to 4.8 per cent. Dr Singh said the Reserve Bank of India will continue to focus on bringing down inflation.

Expressing concern over the sharp decline in exchange rate of rupee, the Prime Minister said that the downward trend was the reaction of the market to certain unexpected external developments. He said the rupee has been specially hit because of large Current Account Deficit (CAD) and some other domestic factors.

The government intends to act to reduce the CAD and improve the economy. The Prime Minister regretted that many necessary laws are held up for lack of political consensus and urged political parties to join the government’s efforts to put the economy on path of stable growth.

He said, no doubt, the country is faced with challenges but it has the capacity to address them. Dr Singh asserted that the government is not contemplating any capital-control measures in view of turbulence in capital and currency markets. He said the sudden decline in exchange rate is certainly a shock but the government will address it through other measures.

The Lok Sabha was adjourned till 2 PM today following noisy scenes. Not satisfied with Prime Minister’s statement on country’s economic situation, the main opposition BJP staged a walkout.

Trinamool Congress members also expressed resentment. Some members from Andhra Pradesh shouted slogans against the proposed formation of Telangana. Taking note of the situation, Presiding Officer Thambidurai, adjourned the House half-an-hour before lunch break.