The Prime Minister told the Parliament that he was willing to make a statement on the state of economy on Friday, when the lawmakers asked him what steps the government was considering to take to deal with the falling rupee.
    
"I would be happy to make a statement on Friday," he said.

"It cannot be denied that the country is faced with a difficult economic situation," Singh said after Leader of the Opposition Arun Jaitley sought his response on the rupee hitting a life-time low.
     
"There are several causes (for the economic woes). I do not deny some domestic factors too are responsible," he said.
     
Listing some of the external factors that have impacted rupee and Indian economy, Singh said US monetary stance and problems created by tensions in Syria and its "inevitable consequences on oil prices" have played their role.

Singh cautioned that the rising tensions in Syria could have negative implications for oil prices. India imports nearly 80 percent of its crude oil needs.
     
"We have to reckon with these uncertainties," he said, adding he needed "sometime to reflect" on these.

The rupee is the worst-performing major emerging market currency since May. It declined to a record low of 68.85 per dollar on Wednesday, posting its biggest single-day percentage fall since October 1995.

Parties flay government

Arun Jaitley (BJP):  There was "panic" in the country as people don't know where the devaluation of the rupee will stop. Inflationary pressure will be twice as rising food prices will be coupled with imported inflation in form of rising oil prices in the international market. In situation like this, what is that government is going to do.

Sitaram Yechury (CPM): We want to know if after 22 years of reforms under Manmohan Singh, the country has come back to square one.

Sushma Swaraj (BJP):
On Tuesday, there was a debate in the House on the state of the economy in which the Finance Minister gave a long speech enumerating 10 steps and maintained that if these are implemented the economy will improve. After this the confidence of the country and the investors should have increased by at least 10-20 paise but it has actually fallen. The country's reputation is attached to the Rupee.

Mulayam Singh Yadav (SP): Some fall in the rupee over a period of time is understandable but it has continuously gone down. This is due to the wrong policies of the government. The budget of this year was also against the policies. In 1991, India had to pledge gold and today the world is eyeing India's gold again.
      
Sougat Roy (TMC): Drastic fall in the rupee's value is causing concern at the national and the international level. In the ten steps enumerated by the Finance Minister to improve the economy, there was no mention of anything on checking the cascading fall of the rupee which is going over the roof. Moreover, the passage of the Food Security Bill has led to fears that the fiscal deficit will increase.
    
Sharad Yadav (JD-U):
It was devaluation of the currency that led to disintegration of USSR. Every month the government says things will improve... The country is sinking and the Prime Minister should clarify.

Basudeb Acharia (CPI-M): The liberal economic policy of the government is responsible for the crisis.

JPN/Agencies

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