Even as the financial figures continue to be dismal, Planning Commission Deputy Chairman Montek Singh Ahluwalia said the situation had not reached a point where outside help was required. He ruled out approaching International Monetary Fund for assistance.
“Our current economic situation does not warrant it. I do not anticipate it in the near future. India’s reserves are comfortable,” the Deputy Chairman said.
India’s foreign exchange reserves were up at $278.602 billion as on August 9.
In his reaction to the first quarter Gross Domestic Product (GDP) which came out less than expected on Friday, Montek said: “Well, we were aware that the growth rate has been slowing down. We never felt that in the first quarter there was much sign of an improvement... And it’s in the second half of the year that we might see an improvement.” Briefing reporters on the G-20 summit in St Petersburg attended by Prime Minister Manmohan Singh next week, Montek said that the BRICS nation may reach a consensus on the sidelines to create a $100 billion currency reserve fund to ease short-term liquidity pressure.
A day after the Prime Minister said rather sarcastically to an irate Opposition that he commanded a “certain respect” in G-20, Montek said that the Prime Minister would be an “important, knowledgeable voice, reflecting not just India’s voice, but also that of the developing world”.