New Delhi: Prime Minister Manmohan Singh has acknowledged that India too will be affected by financial crisis and has asked the Reserve Bank of India Governor Duvvuri Subbarao to cut short his US trip.
Subbarao is in Washington for the World Bank and International Monetary Fund meetings, about the current financial crisis and its impact on India.
Earlier, the Prime Minister had asked Finance Minister P Chidambaram and Commerce Minister Kamal Nath to call off their trips to the US.
It indicates the there is a growing concern over the liquidity crunch in the Central Government.
Analysts claim it shows a slew of measures, like easing external commercial borrowing norms and reducing cash reserve ratio, have so far failed to achieve the desired results.
The government is now reportedly thinking of new measures like banning short-sales in futures and banning reverse repo.
Chidambram, too, has asked the World Bank and International Monetary Fund to step in to ensure liquidity in markets to boost consumer confidence.
Speaking at a Reserve Bank of India meet, Chidambaram said, "Emerging markets have so far shown resilience, but accessing financial resources might become more difficult and expensive."
"This is an opportunity to make the World Bank a more responsive, credible and relevant organisation and to realign its role. A global recession will sharply contract the demand for exports of many developing countries, adversely affecting their growth prospects," Chidambaram said.
Comments
0 comment