New Delhi, August 30
Ruling out reversal of reforms to fight the currency shock, Prime Minister Manmohan Singh in an uncharacteristically aggressive mode slammed the main Opposition party, the BJP, for the pervasive Parliament logjam which was hurting investor confidence and lack of political consensus which was holding up important reforms such as implementation of Goods and Services Tax and reduction of subsidies.

Manmohan Singh launched a stinging attack on the BJP in the Rajya Sabha saying that Parliament was not being allowed to function, hitting investor sentiment. “The Opposition needs to recognise its responsibility. Essential legislations need to be passed for future of the country,” he said.

“Building consensus is both the responsibility of government and the Opposition. I wish the conduct of the Opposition party was consistent while letting the ruling party govern,” he said, responding to clarifications on his statement on the sliding Rupee.

"We have a responsibility to act collectively to deal with this crisis of confidence," he said. "We need to make sure India is perceived as creditworthy, bankable & viable," said the Prime Minister.

In his statement earlier in the day on the economic situation amid concerns over the sharp fall of the rupee, the Prime Minister had touched a similar theme and cited the lack of political consensus that is holding up difficult reforms like reduction of subsidies, implementation of the GST and opening up of insurance and pension sectors which require political consensus.

In his statement, the PM while admitting that some short-term shocks may be in store for the economy due to the currency volatility, assured that the government would ensure that the fundamentals of economy remain strong.

“We are faced with challenges but we have the capacity to deal with them”, he said, while seeking support of all political parties.

Reaching out to the Opposition and asking them to forge consensus on difficult reforms, he said, "These difficult reforms are not low-hanging fruits and they need active political consensus. I urge political parties to move towards the same and join in the government's effort to put the economy back on the path of stable, sustainable growth”.

Markets were enthused by the Prime Minister’s statement with the BSE rising by 219 points to the highest level in more than two weeks. The rupee also strengthened by 85 paisa to close at 65.70 against the dollar.

While indicating the need to brace for short-term shocks, Manmohan Singh said there was no question of reversing policies or introducing capital control because of some turbulence in currency markets.

He said the US Federal Reserve tapering has caused general weakening in global currencies. The Prime Minister also said that India needs to reduce its appetite for gold and economise use of 
petroleum products to cut down on the current account deficit which is the main reason for the weakening rupee.

Expressing confidence that the economy would grow faster in the second half of the year, he added that results of various reform measures taken by the government would bear fruit by then and the country’s growth rate would be close to 5.5 per cent.

Pointing out that the fundamentals of the Indian economy is much stronger now, the Prime Minister said the country is not back to 1991. “We have no reason to believe that Indian economy is back to 1991. Our fundamentals are much stronger,” he said.