Manmohan assures industry on economy

Govt. is committed to bringing down current account deficit, from both demand and supply side, the Prime Minister told the ASSOCHAM’s annual general meeting.

Prime Minister Manmohan Singh addresses ASSOCHAM’s 92nd Annual Session in New Delhi on Friday. Photo: Kamal Narang

Prime Minister Manmohan Singh on Friday assured the industry that government is taking action to improve the economy.

“I know that business is deeply concerned about the slowdown in the economy,” Dr. Singh said addressing the annual general meeting of industrial chamber ASSOCHAM.

“When things are going bad, as they seem to be at present, it is the responsibility of the government to become proactive. The biggest concern is volatility of foreign exchange,” he said.

The Prime Minister said that the situation arose as large amounts of funds were withdrawn from the market, which led to the rupee’s depreciation.

“We are committed to bringing down the current account deficit, from both demand and supply side,” he added.

Talking about the current account deficit of the country, which is at 4.7 per cent of the gross domestic product (GDP) in 2012-13, he said “it is possible to bring it down to 2.5 per cent but that cannot happen in one year”. He added that it would come down to some extent in 2013-14.