PM in denial mode over state of economy: BJP

Accusing Prime Minister Manmohan Singh of being in "denial mode" over the state of Indian economy, BJP on Wednesday asked the government to treat the present problems as a "wake-up" call and take effective measures.

"The patient does not want to be treated. He is convinced that he is not unwell.... The Prime Minister's statement that fundamentals of the Indian economy are strong comes as a surprise. It clearly shows that the Prime Minister is living in denial about the real state of the India economy," Leader of Opposition in Rajya Sabha Arun Jaitley told reporters in Delhi.

Earlier in the day, the Prime Minister had said scaling down by Moody's of India's growth forecast to 5.5% was a "cause for concern" but insisted that one should not draw "unwarranted conclusions".

Singh also maintained that fundamentals of Indian economy are strong and it will still do better than 6.5 5% growth performance of last year.

Jaitley said experts both outside and within the country are commenting adversely on the state of Indian economy and Singh and his government are behaving "like a patient who refuses to accept that he is ill".

"The sentiment is low. India is no longer an investment destination. Inflation has reached unacceptable levels. Infrastructure ministries are moving slowly. Corruption has created an adverse environment. This government is being accused of policy paralysis," Jaitley said.

He maintained that the government should treat this as a "wake-up call" and the PM must respond to it rather than living in denial. "Economy is not run by bravado," Jaitley said.