Some comfort: Manmohan Singh says it's not return of 1991 economic crisis
- Elections 2014 Live: TMC workers beat up poll officials in Bengal; Rahul attacks Modi over Adani link
- Narendra Modi slams Mamata Banerjee, says she is playing vote bank politics
- #WhyiVoted: Let's hear it from India
- Jet flight out of contact for 30 mins, causes panic, 2 pilots grounded
- Narendra Modi mentions wife Jashodaben in poll affidavit for first time
A day after Indian financial markets were hit by the impact of capital controls set by the Reserve Bank of India, Prime Minister Manmohan Singh on Saturday called for "fresh thinking" on macro-economic policy-making, including the debate on growth and inflation.
"And I would venture to think that the time has come when we should revisit some of those areas — the possibilities and limitations of monetary policy in a globalised economy, in a fiscally constrained economy," Singh said after releasing the fourth volume of RBI History: Looking Back and Looking Ahead at his residence.
He said despite the upheavals, India is not about to face another economic crisis like the one experienced in 1991. "There is no question of going back to 1991. At that time foreign exchange in India was a fixed rate. Now it is linked to market. We only correct the volatility of the rupee," he said.
Singh acknowledged that India's current account deficit was still high and blamed elevated imports of gold as a key factor. "We seem to be investing a lot in unproductive assets," he said.
Meanwhile, outgoing RBI Governor D Subbarao said inflation control will remain the focus of the bank's strategy to deal with the current crisis, despite Finance Minister P Chidambaram saying in parliament that restoring growth should be the overarching priority.
RBI's hawkish measures to keep the rupee from dipping contributed to the largest fall in the markets in two years on Friday.
As stock, currency and bond markets measured their losses over the weekend, Subbarao said, "The Reserve Bank is committed to inflation control, not because it does not care for growth but because it does care".
- Neemu Bhoumik seeks LS entry; people’s issues, Raiganj roots in mind
- Another Bittu, Simerjit file papers as Independents
- Firing at district food and civil supplies office, one injured
- Day after stand-off with EC, Didi vows ‘revenge’ over ‘insult’ by Delhi
- ‘Hate’ speech: Amit Shah moves HC for stay on arrest, quashing of FIRs
- Adarsh Shastri ‘covers’ for AAP’s Jaaferi