New Delhi: Despite a sharp slowdown in economic growth, high inflation and record fall in the value of rupee, Finance Minister Pranab Mukherjee on June 4 emphasized that Indian economy has not gone back to the 1991 era and the government will be able to improve the situation.
Mukherjee pointed out that foreign exchange reserves in 1991 were not enough to meet even 17 days imports, while the country’s current forex reserves can pay imports bill for seven and a half months.
Mukherjee’s comment came in the backdrop of steep fall in the value of the rupee and economic growth slumping to nine-year low due to the manufacturing sector contracting.
As per the data released by the Central Statistics Office last week, India’s economic growth slumped nine-year low of 5.3 percent in January-March quarter, dragged by the contraction in the manufacturing sector.
The value of Indian rupee fell to record low of 56.52 against a dollar on May 31 after the announcement of poor economic numbers.