Arab Today, arab today indian pm rules out repeat of 1991 economic crisis
Last Updated : GMT 19:13:47
Arab Today, arab today
Arab Today, arab today

Indian PM rules out repeat of 1991 economic crisis

Arab Today, arab today

Arab Today, arab today Indian PM rules out repeat of 1991 economic crisis

New Delhi - AFP

India\'s premier ruled out Saturday any suggestion the country could suffer a repeat of its 1991 balance-of-payments crisis as it grapples with a plunging rupee and a huge trade gap. Prime Minister Manmohan Singh spoke a day after India\'s currency hit a new low of 62.03 rupees to the dollar and stocks posted their sharpest single-day fall in nearly two years. Singh was finance minister in 1991 and was credited with overcoming the deep economic crisis. \"There is no question of going back to the 1991 crisis,\" Singh told reporters in New Delhi in televised remarks at a book launch. In 1991, hard currency reserves had sunk so low that India was on the brink of defaulting on its foreign loans. Singh said the country only had foreign exchange reserves for 15 days in 1991. \"Now we have reserves of six to seven months. So there is no comparison. And no question of going back to the 1991 crisis,\" he said. India still has painful memories of 1991, when New Delhi had to pledge its gold reserves with the International Monetary Fund to fund its debt. To get India out of its economic morass, Singh unleashed sweeping change, beginning the process of abolishing what was known as the \"licence raj\", a system of economic management ruled by government monopolies, quotas and permits that dictated what firms could make. Since June 1 this year, overseas funds have pulled out a combined $11.58 billion in equities and debt from India\'s markets over concerns about a sharply slowing economy, regulatory data shows. To curb the rupee\'s fall, Indian policymakers have pushed up short-term interest rates and announced plans to allow state firms to raise funds abroad and curb gold imports. Earlier this week, the central bank also tightened controls on the amount of money local firms and individuals can send abroad. Asked about the record current account deficit -- the broadest measure of trade -- Singh acknowledged the problem and said gold imports needed to be further curbed. Gold is the second-largest contributor to the current account deficit after oil. \"We seem to be investing a lot in unproductive assets,\" he noted. Gold is hugely popular in India, especially during religious festivals and wedding seasons, and is also bought as a hedge against inflation. India\'s woes have been exacerbated by signals the US could soon slow its stimulus drive that prompted big investment flows to emerging markets, and homegrown graft scandals that have virtually paralysed government policymaking. Singh added that he hoped for \"fresh thinking\" at the central bank when its new governor Raghuram Rajan takes over in September. \"The time has come to look at the possibilities and limitations of the monetary policy in a globalised economy,\" he said. India\'s finance ministry is reported to regard the current central bank leadership as overly conservative in its focus on inflation at the expense of economic growth. Rajan is a former International Monetary Fund chief economist and is famed for predicting the 2008 global financial crisis.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today indian pm rules out repeat of 1991 economic crisis Arab Today, arab today indian pm rules out repeat of 1991 economic crisis

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today indian pm rules out repeat of 1991 economic crisis Arab Today, arab today indian pm rules out repeat of 1991 economic crisis

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today What's the reason and what you can do

GMT 05:44 2017 Sunday ,22 October

What's the reason and what you can do
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today El-Sissi vows to quash terrorism

GMT 18:47 2017 Sunday ,22 October

El-Sissi vows to quash terrorism
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today EU raids automaker BMW

GMT 11:06 2017 Saturday ,21 October

EU raids automaker BMW
Arab Today, arab today Sweden to get biggest car factory

GMT 14:10 2017 Friday ,20 October

Sweden to get biggest car factory
Arab Today, arab today Actress Mona Zaki praises husband’s role

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 08:57 2017 Wednesday ,18 October

Actress Shery Adel happy for Egypt’s qualification

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 10:18 2017 Saturday ,21 October

How to do open-heart surgery

GMT 13:44 2017 Friday ,20 October

Barcelona through George Orwell’s eyes

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday