Recent actions will stabilise rupee, says PM

Recent actions will stabilise rupee, says PM

Recent actions will stabilise rupee, says PM

Prime Minister Manmohan Singh on Saturday said some recent actions such as the $50 billion currency swap pact with Japan will stabilise the rupee and pave the way for inflow of overseas capital into India.

Speaking to journalists on his way back from St Petersburg after attending the G20 Summit, the Prime Minister said a framework was laid for a $100 billion currency reserve pact among the BRICS nations - Brazil, Russia, India, China and South Africa.

These five countries, he said, have also agreed to a development bank with a capital of $50 billion.

He also mentioned the decision to expand the currency swap agreement with Japan to $50 billion from $15 billion now.

“On the margins, certainly, what we have agreed with Japan will help, but ultimately, we have to get the fundamentals of our economy in robust health,” the Prime Minister said. He also refereed to a spate of economic legislations that were passed by parliament, including bills on company regulations, land acquisition and allowing foreign capital in the pension sector.

“That (economic legislation) will also help to revive confidence and we have to work to ensure that the fiscal deficit does not exceed 4.8 percent and whatever we can do to contain the current account deficit, will be put in practice.”

At the same time, the prime minister said he will undertake certain important visits including Washington, Moscow, Beijing and Brunei to enhance trade and investment relations with not with just these countries but the world at large.