External global factors led to rupee slide: PM Manmohan singh

Mumbai, August 30 – Prime Minister Manmohan Singh today told Lok Sabha that the rupee has been especially hit because of India's large current account deficit, external issues like tensions over Syria and domestic factors. (Hindustan times report).

 

The PM's statement was in response to Leader of the Opposition Arun Jaitley saying that given the economic situation and the depreciation of the rupee, the House expected the prime minister to make a statement.

 

"It cannot be denied that the country is facing a difficult economic situation… I do not deny that there are some domestic factors. But there are also international factors arising out of the change in the US economic stance. There are also problems created due to tensions that are on the horizon in Syria and they have inevitable consequences for oil prices," the PM had said on Thursday in Parliament.

 

Jaitley had pointed to food inflation, higher oil prices in the worlds market, the falling rupee that would make imports all the more costlier and multiply inflation, and falling manufacturing and even service sector growth.

Source: HT