The Communist Party of India-Marxist (CPI-M) charged the Congress-led ruling establishment at the Centre with creating a situation akin to the time of the major financial crisis in 1991. (JPN/Agencies)
CPI-M leader Sitaram Yechury accused Prime Minister Manmohan Singh of failing to tackle the situation.
"We demand immediate alteration of policies being pursued by the government," he said and blamed the United Progressive Alliance's economic policies for the downslide of the rupee, which plummeted to around Rs.62 to a dollar Friday, and climbdown of all economic indicators, including the sensex.
Yechury said if the rupee continues its fall, it would soon touch Rs.80.
The economic policies of the government "have brought the economy to the same place where we started in 1991. The country was faced with a major financial crisis at that time too", Yechury said.
The Bharatiya Janata Party's Shahnawaz Hussain said despite having an economist as Prime Minister, the economic situation in the country was worse than 1991.
The Prime Minister on Saturday ruled out the possibility of India witnessing a repeat of the 1991 balance of payments crisis and also reversing the path to globalization of the economy.
"There is no question of going back to 1991 (balance of payment crisis). At that time foreign exchange in India was a fixed rate. It is now linked to the market. We only correct the volatility of the rupee," he said.
“In 1991, the country had only foreign exchange reserves for 15 days. Now we have reserves of six to seven months. So there is no comparison. And no go question of going back to the 1991 crisis,” the Prime Minister said.
The Communist Party of India-Marxist (CPI-M) charged the Congress-led ruling establishment at the Centre with creating a situation akin to the time of the major financial crisis in 1991.