New Delhi, December 16
India is nowhere near recession though it has been impacted by the global economic meltdown, home minister P. Chidambaram said today. “Many countries are facing recession but India is nowhere near recession,” Chidambaram, who previously held the finance portfolio, said during question hour in the Rajya Sabha.
At the same time, we are affected by the slowdown of the economy because of the global meltdown, Chidambaram added, while responding to a question from N.K. Singh of the BJP on how India's inflation rate compared with international trends. Prime Minister Manmohan Singh, who holds the finance portfolio after Chidambaram was shifted to the home ministry following the sacking of Shivraj Patil in the wake of Mumbai terror attacks, was also present in the House. It had previously been announced that Chidambaram would field questions relating to the finance ministry in Parliament.
According to Chidambaram, if growth dips over two quarters, then there is inflation. India, he said, has been facing inflation since April due
to the rising international prices of crude, metals and foodgrains. “Now, these prices are inching downward,” he said.
The government, Chidambaram maintained, was trying a balance between growth and controlling inflation and was biased in favour of growth. Therefore, the Prime Minister had announced a (Rs 20,000 crore) stimulus package (earlier this month). Replying to N.K. Singh’s supplementary on the steps the RBI had taken in view of the continuing depreciation of the rupee, Chidambaram said: “This is something that is controlled by market forces. The RBI intervenes when there is excessive volatility. The rupee is now appreciating.”
