Re fall could help exports if mining wasn't banned: PM
PTI, NEW DELHI | 30 August 2013 20:42 IST
Prime Minister Manmohan Singh today sought to show the positive side of depreciating rupee saying it is good for the economy as it increases export competitiveness and discourages imports
"To some extent, depreciation can be good for the economy as this will help to increase our export competitiveness and discourage imports", he said in his statement to both houses of Parliament.
He attributed the decline in value of rupee to host of global and domestic factors like highcurrent account deficit (CAD), US Federal Reserve plans to taper quantitative easing measures and tensions in Syria.
The CAD, he said, rose "mainly on account of huge imports of gold, higher costs of crude oil imports and recently, of coal. On the export side, weak demand in our major markets has kept our exports from growing. Exports have been further hit by a collapse in iron ore exports. Taken together, these factors have made our current account deficit unsustainably large."
The Prime Minister said part of the rupee depreciation, "was merely a needed adjustment. Inflation in India has been much higher than in advanced economies. Therefore, it is natural that there has to be a correction in the exchange rate to account for this difference."
The rupee touched an all time low of 68.80 to a dollar earlier in the week, though it strengthened to below 66. Admitting that sudden decline in the exchange rate was "a shock", Singh said, "we will address this through other measures, not through capital controls or by reversing the process of reforms".
Ultimately, the value of the rupee is determined by the fundamentals of the economy, Singh said, adding "while we have taken a number of actions to strengthen those fundamentals, we intend to do more."
Full Speech of Dr Manmohan Singh
IF GOVERNMENT GETS BACK THE LOOTED MINING AMOUNT OF 35,000 CORERS THEN GOA CAN BECOME RICH. THESE 35,000 CORERS IS ENOUGH FOR ALL GOANS TO LEAD A GOOD LIFE.
Mining Compensation should be given to those farmers who has lost their farms and not to those who has taken their farms. Mining Compensation should be given to those Tourist Sector who has lost their Tourism and not to those who has taken their Tourists. Tourism & Agriculture has taken a back-seat due to Mining.
Thanks to the GOA FOUNDATION, who came as a Savior for Goans. Goans was continuously breathing the poisonous air. Thanks to the SUPREME COURT for banning mining in Goa. Mining closure has given fresh air & greenery look. Agriculture has come alive. Thanks to all the ANTI-MINING ACTIVISTS who works tirelessly & fearlessly in Saving Goa and not allowing to become another Khedernarth Tragedy in Goa. THANKS.
IAC must support Aam Aadmi Party. Arvind Kejriwal is Secular & Honest. Goans must vote Aam Aadmi Party. Aam Aadmi Party is Honest and Secular.
Thanks to the GOA FOUNDATION, who came as a Savior for Goans. Goans was continuously breathing the poisonous air. Thanks to the SUPREME COURT for banning mining in Goa. Mining closure has given fresh air & greenery look. Agriculture has come alive. Thanks to all the ANTI-MINING ACTIVISTS who works tirelessly & fearlessly in Saving Goa and not allowing to become another Khedernarth Tragedy in Goa. THANKS.
FOR MINING COMPENSATION, FIRST GOVERNMENT MUST CHECK MINING AFFECTED PEOPLES BACKGROUND. THEIR BANK BALANCE, PROPERTIES, ETC.