ID :
31663
Sat, 11/22/2008 - 21:59
Auther :
Shortlink :
http://m.oananews.org//node/31663
The shortlink copeid
Will employ all policy tools to fight crisis: PM
New Delhi, Nov 21 (PTI) Prime Minister Manmohan Singh Friday said the economy will grow by eight per cent and government will resort to fiscal, monetary, exchange rate and public spending instruments to neutralise the impact of the global meltdown and recession in the West.
The current crisis is "deep", but the economic exigency of 1991 was "more" serious and the country had even then managed to overcome it efficiently, he said at the Hindustan Times Leadership Summit here.
"But I assure that despite the international environment, we have the capacity and ability to sustain the growth rate of about eight per cent and will do so," he said.
The government is fully committed to ensuring that the
industry "sails and sails, not in the choppy waters but moves
ahead with speed," he said.
"No instruments of public policy will be spared. We will
use fiscal, monetary, public investment and exchange rate" to
tackle the current crisis, said Singh, who was the Finance
Minister in 1991 when the country averted defaulting on its
international payment obligations.
The government and Reserve Bank of India have already
unveiled a number of fiscal and monetary policy measures
ranging from import levies to rate cuts to guard against cheap
imports and stimulate the economy, respectively.
"In a globalised world, we cannot pretend that we will
not be affected by the crisis that has not been created here
but somewhere else.
"We can and we will survive this crisis and emerge
stronger if we have the imagination and will to work
together," Singh said as he warned that "competitive politics"
could hamper this process.
"We will through the use of fiscal policies, through the
use of monetary policies, through the use of public investment
ensure that the shortage of demand coming as it is from the
global slowdown is neutralised to the maximum possible
extent," he said.
Singh said the government had anticipated some slowdown
in the economy and that this was reflected in the 2008-09
Budget wherein provisions were made with regard to the revenue
deficit, social development programmes like the National Rural
Employment Guarantee scheme and infrastructure projects.
The industry must have the confidence as the government
knows how to tackle such situations, Singh said, adding that
"we have the will and resources."
Observing that the developing countries were the "worst
victims" of a crisis that was not of their making, he said the
developed countries have the responsibility to ensure that the
burden "does not fall disproportionately" on the shoulders of
the weak and the Millennium Development Goals should not
suffer.
Referring to the recent G-20 meeting in Washington on the
economic crisis which he attended, Singh expressed
satisfaction at its outcome and said "hopefully a beginning
has been made" to correct the international financial
architecture and tackle the problem. PTI
The current crisis is "deep", but the economic exigency of 1991 was "more" serious and the country had even then managed to overcome it efficiently, he said at the Hindustan Times Leadership Summit here.
"But I assure that despite the international environment, we have the capacity and ability to sustain the growth rate of about eight per cent and will do so," he said.
The government is fully committed to ensuring that the
industry "sails and sails, not in the choppy waters but moves
ahead with speed," he said.
"No instruments of public policy will be spared. We will
use fiscal, monetary, public investment and exchange rate" to
tackle the current crisis, said Singh, who was the Finance
Minister in 1991 when the country averted defaulting on its
international payment obligations.
The government and Reserve Bank of India have already
unveiled a number of fiscal and monetary policy measures
ranging from import levies to rate cuts to guard against cheap
imports and stimulate the economy, respectively.
"In a globalised world, we cannot pretend that we will
not be affected by the crisis that has not been created here
but somewhere else.
"We can and we will survive this crisis and emerge
stronger if we have the imagination and will to work
together," Singh said as he warned that "competitive politics"
could hamper this process.
"We will through the use of fiscal policies, through the
use of monetary policies, through the use of public investment
ensure that the shortage of demand coming as it is from the
global slowdown is neutralised to the maximum possible
extent," he said.
Singh said the government had anticipated some slowdown
in the economy and that this was reflected in the 2008-09
Budget wherein provisions were made with regard to the revenue
deficit, social development programmes like the National Rural
Employment Guarantee scheme and infrastructure projects.
The industry must have the confidence as the government
knows how to tackle such situations, Singh said, adding that
"we have the will and resources."
Observing that the developing countries were the "worst
victims" of a crisis that was not of their making, he said the
developed countries have the responsibility to ensure that the
burden "does not fall disproportionately" on the shoulders of
the weak and the Millennium Development Goals should not
suffer.
Referring to the recent G-20 meeting in Washington on the
economic crisis which he attended, Singh expressed
satisfaction at its outcome and said "hopefully a beginning
has been made" to correct the international financial
architecture and tackle the problem. PTI
