Parliamentary Panel Flags Rupee Value, Slugging Pvt Investments
“Issues such as rising prices, inflation, the conflict in West Asia, and China's recent stringent laws aimed at protecting its industries were deliberated upon. While there are still certain headwinds, I would say that despite these serious challenges, India's economy is emerging in a stronger position,” committee chairman Bhartruhari Mahtab told reporters after the meeting
New Delhi: With falling value of the rupee and sluggish private investment in the country, members on Thursday expressed concern at a parliamentary standing committee meeting here even as the government said despite challenges India's economy was emerging stronger.
“Issues such as rising prices, inflation, the conflict in West Asia, and China's recent stringent laws aimed at protecting its industries were deliberated upon. While there are still certain headwinds, I would say that despite these serious challenges, India's economy is emerging in a stronger position,” committee chairman Bhartruhari Mahtab told reporters after the meeting.
The parliamentary standing committee on finance, headed by BJP leader Mahtab, economic affairs secretary Anuradha Thakur and chief economic advisor V Anantha Nageswaran made a presentation in a meeting, discussing the economic situation of the country. “There are several encouraging indicators as household savings have increased compared to last year, and investment is also rising,” Mahtab said.
“However, the challenge is that while the government investment and capital expenditure are increasing, private investment has not been picking up at the same pace. This is an issue that we need to address. The committee decided to meet again in the third week of the month. We will also prepare a report that will not only describe the challenges we face but will also provide recommendations on what the government should consider to address them,” he said.
Asked whether the issue of the falling value of the rupee figured in the meeting, Mahtab said the MPs discussed the issue. “Falling rupee is also a matter of concern. The RBI is taking steps to control it,” he said.
On sluggish private investment, he also expressed his concern, urging that certain policy changes are required. “At the same time those who are moving out of China, what type of support we are providing to set up their industries in our country, that is also something we have to see. The panel members also asked about the trade agreement India is going to sign with the United States,” he said.
“But the major concern is when we are attracting foreign direct investment (FDI) in large numbers, there is also a flight of FDI from our country. What the chief economic advisor has said is that it is cyclical in nature. In three years' time, when FDI is increasing, there is another three-year term when there is flight,” he added.
