Ranchi: Questioning why the government waited for eight years to initiate austerity measure, BJP leader Rajnath Singh on Sunday said the country’s economic situation reminded him of the Chandrashekhar regime when gold had to be mortgaged.

"The new low of the rupee against the dollar has become a cause for concern and it reminds one how the country's gold was mortgaged during Chandrashekhar's regime (November 1990 to June 1991)," Singh told a press conference here.

Reacting to rupee touching record low on Friday, the former UP chief minister alleged, "The Congress-led UPA government's wrong economic policy, economic planning and corruption have led to such a situation.

"Now the Centre is preparing for austerity measures. What were you (government) doing for the last eight years? Who asked you to be spendthrift? The RBI and Centre should take effective steps to bring back the economic situation back on track," Singh said.

Claiming that India was no more an attractive spot for the investors who were "fleeing", the former BJP president said the country's foreign exchange reserves have sharply dropped while China's have been increasing.

"The fall of rupee and depleting foreign exchange reserves are a cause for concern and what would happen during petrol price hike and the subsequent payment of more money to purchase crude oil," Singh said as he painted a bleak economic picture of the country.


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