ADVERTISEMENT

PM stresses need to revive investor sentiment, address exchange rate, capital flow issues

ADVERTISEMENT

Prime Minister Manmohan Singh today stressed the need to work towards reviving investor sentiment, both domestic and international, and address issues related to the slide in the exchange rate of the rupee and drying up of capital flows

At a meeting with officials of the Ministry of Finance after taking over the portfolio, Dr Singh said the country was passing through challenging times economically.
 
"The growth rate has taken a dip; the industrial performance is not satisfactory; things are not rosy on the investment front; inflation continues to be a problem," he said.
 
"On the external front, I am concerned about the way the exchange rate is going. Investor sentiment is down and capital flows are drying up," he said.
 
"There are some external reasons and we need to work towards making our country resilient in meeting these external challenges. However, there are many domestic reasons as well. We need to address these quickly. We need to work to get the economy going again and restart the India growth story. 
 
"In the short run, we need to revive investor sentiment, both domestic and international," he said.
 
Dr Singh has decided to keep the Finance portfolio with himself after Mr Pranab Mukherjee resigned as Finance Minister yesterday to contest the July 19 election for the office of the President as a candidate of the ruling Congress-led United Progressive Alliance (UPA) and several other parties.
 
He said there have been many factors that have contributed to the general negative mood in the country.
 
"There are problems on the tax front which need to be addressed. On the financial sector side, we need to see how we can improve matters. There are issues about the mutual funds industry which need to be resolved. The insurance sector has seen a slowing down which is not normal in a country with large unmet insurance needs. This needs to be looked into. I would like you all to work as a team on all these matters. There are some issues we must address in the short run and some in the long run. I am sure you will be able to work on both fronts," he said.
ADVERTISEMENT
 
Dr Singh, who had served as Finance Minister during 1991-96, when he had launched the economic reforms, told the officials that, apart from a brief spell in 2008, he had been away from the details and nitty-gritty of Finance for a long time.
 
"Therefore, I depend on all of you to give me sound advice on not just matters relating to the Finance Ministry but all aspects of the government and the economy as a whole," he said.
 
He pointed out that the Finance Ministry is an all-encompassing Ministry whose reach extends to every corner of the government and the nation. 
 
"The way it functions is critical for the future of millions of our countrymen who look up to the government to throw open channels for their progress, prosperity and welfare. Therefore, the Finance Ministry has a vital role in evolving economic policies which are conducive to economic growth and the overall welfare of the nation," he said.
 
"The Finance Ministry has had a glorious tradition of doing excellent work. I expect the same from you," he added.
 
Those present at the meeting included Dr Kaushik Basu, Chief Economic Adviser, Mr Pulok Chatterjee, Principal Secretary to the Prime Minister, Finance Secretary R S Gujral and Secretaries in the Finance Ministry R Gopalan, Sumit Bose, D K Mittal and Mohammed Haleem Khan and other senior officials.
 
NNN
ADVERTISEMENT
© Copyright 2012 NetIndian. All rights reserved. Republication or redistribution of NetIndian content, including by framing or similar means, is expressly prohibited without the prior written consent of NetIndian Media Corporation. Write to info[AT]netindian[DOT]in for permission to use content. Read detailed Terms of Use.