Nowhere close to recession; yet, says Chidambaram, "we are affected by the slowdown of the economy because of tbe global meltdown".
NEW DELHI: India is "nowhere" near recession, though it has been affected by the global economic meltdown, home minister P Chidambaram said on Tuesday.
"Many countries are facing recession, but India is nowhere close," Chidambaram, who previously held the finance portfolio, said during question hour in the Rajya Sabha.
"At the same time, we are affected by the slowdown of the economy because of tbe global meltdown," Chidambaram said. He was responding to a question from NK Singh of the Bharatiya Janata Party (BJP). Singh was asking for a comparison of India's inflation rate with international trends.
Prime minister Manmohan Singh, who holds the finance portfolio after Chidambaram was shifted to the home ministry following the sacking of Shivraj Patil in the wake of the Mumbai terror attacks, was present in the house at the time. It had previously been announced that Chidambaram would field questions relating to the finance ministry in Parliament.
Chidambaram said India "has been facing inflation since April due to the rising international prices of crude, metals, and foodgrains. Now, these prices are inching downward."
The government, Chidambaram maintained, was "trying a balance between growth and controlling inflation" and was "biased in favour of growth. Therefore, the prime minister had announced a (Rs20,000 crore) stimulus package (earlier this month)".
Replying to NK Singh's supplementary on the steps the Reserve Bank of India (RBI) had taken in view of the continuing depreciation of the rupee, Chidambaram said: "This is something that is controlled by market forces. The RBI intervenes when there is excessive volatility. The rupee is now appreciating."
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