Press Esc to close
Friday 24 February 2017
News updated at 1:05 PM IST
Weather
Max: 35°C
Min : 19.2°C
In Bengaluru
clear sky

Economy: FM hunkers down with RBI, govt

New Delhi, July 16, 2013, DHNS:
The fall in almost all macro economic data since past week and depreciation of rupee kept the finance ministry officials on their toes on Monday.

Finance Minister P Chidambaram met Prime Minister Manmohan Singh to discuss the economic situation after his return from Washington and the Reserve Bank of India governor D Subbarao made an unscheduled visit to the North Block to deliberate on strategies to tackle the prevailing economic situation.

Later in the day the Prime Minister’s Office informed that it will convene a high-level meeting on Friday to discuss how infrastructure projects can be accelerated. The prime minister is also expected to meet his senior cabinet colleagues on Tuesday to discuss the proposal to hike foreign investment caps in sectors like telecom, retail and defence.

India’s industrial production numbers contracted 1.6 per cent in May, exports declined 4.6 per cent in June, consumer price inflation came back close to 10 per cent in June and wholesale inflation inched close to 5 per cent in the same month. Rupee remained in the touching distance of 60 to a dollar. Manufacturing sector, the backbone of the economy, continued to show weakening signs with auto makers suspending their line of production in the month of July. To put in perspective, all macro-economic indicators suggested the worst is not over for the economy.

“RBI will take into account the inflation figures for monetary policy review,” Subbarao said after meeting finance minister.

The government and the RBI have taken a number of measures to strengthen the rupee in the past weeks, but has so far not yielded desired results. The Indian currency has depreciated 12 per cent over the last two months. To make things worse, prices of crude oil have spiked in the international market posing fresh inflationary problems for India, a net importer of petroleum.

Finance Minister P Chidambaram had discussed the grim economic scenario, specially the weakness in rupee with the prime minister last Monday. The meeting convened by the PMO on July 19 will review progress and award of projects worth Rs 3 lakh crore, including two airports and Eastern Dedicated Freight Corridor.

To be chaired by Principal Secretary to the Prime Minister Pulok Chatterji and attended by secretaries in the departments and ministries of Finance, Economic Affairs, Road, Transport & Highways, Shipping, Civil Aviation and Power besides Railway Board Chairman, the meeting will preparation and award of various projects with an estimated cost of Rs 1 lakh crore.

The Prime Minister will discuss the proposal to hike foreign investment caps with his cabinet colleagues on Tuesday. The other issue is concern raised by Commerce and Industry Ministry on the increasing number of acquisitions of domestic pharma firms by foreign firms.

 

Go to Top

Photo Gallery
A boy carrying his grand father for casting during the 4th phase of assembly elections...

A boy carrying his grand father for casting during the 4th phase of assembly elections...

NSUI activists participating in peace unity march at Delhi University in New Delhi...

NSUI activists participating in peace unity march at Delhi University in New Delhi...

A man dressed as Hindu Lord Shiva performs during a religious procession ahead of the Hindu...

A man dressed as Hindu Lord Shiva performs during a religious procession ahead of the Hindu...

An elderly woman with her goat at the parched bed of a pond in a village in Hubli district...

An elderly woman with her goat at the parched bed of a pond in a village in Hubli district...

An airplane carrying rejected asylum-seekers taxis to the take-off runway at the airport...

An airplane carrying rejected asylum-seekers taxis to the take-off runway at the airport...

Artist K P Satish Babu and team presentation a Doll Dance at the Nirantharam National Music...

Artist K P Satish Babu and team presentation a Doll Dance at the Nirantharam National Music...

Fake notes of Rs 2000 which were dispensed by an SBI ATM in south Delhi...

Fake notes of Rs 2000 which were dispensed by an SBI ATM in south Delhi...

Chief Minister of Gujarat Vijay Rupani gives envelop to a newly married couple of Brahmin Community.

Chief Minister of Gujarat Vijay Rupani gives envelop to a newly married couple of Brahmin Community.

Tigers playing with each other in cage at Sarthana National Park (Surat) in Surat...

Tigers playing with each other in cage at Sarthana National Park (Surat) in Surat...

Akshar Yoga chain members performs stunts during the awareness programme on self defense ...

Akshar Yoga chain members performs stunts during the awareness programme on self defense ...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523