The Prime Minister has urged the officials in the Finance Ministry to seriously look into bringing reforms, which would revive the “animal spirit” in Indian economy.
It looks like the sentiment on Indian economy is getting a fresh look, with the Prime Minister Manmohan Singh himself, taking charge of the finance ministry. The free falling rupee which hit an all time record low of over 57 against the US dollar, has finally stopped its free fall, and saw some gains as the Prime Minister pushed for reforms in the economic sector.
The rupee opened at 56.94/98 against the dollar on Thursday, gaining from the closing levels of 57.15 on Wednesday.
“At the current juncture, we are passing through challenging times economically,” – Mr. Singh was quoted as saying in a meeting with the Finance ministry officials. “We need to work to get the economy going again and restart the India growth story.” he said.
Mr. Singh is understood to have admitted that there were problems on the tax front, and they need to be addressed, to boost the investor confidence.
It becomes interesting to watch if this new push for reforms by the PM, will have long standing benefits on the economy. Singh is credited to have been the champion of steering India’s economic growth during the 1990′s when he held the Finance portfolio in the Central government.
Expectations galore as he has retaken the portfolio this time, on account of the erstwhile FM Mr. Pranab Mukherjee, resigning from the post to contest the Presidential Elections.
A few other possible candidates who could be appointed as new FM , are also floating around. Popular names in the fray are of Dr. C Rangarajan, former governor of the RBI, Home Minister P Chidambaram, Union Minister Jairam Ramesh.
Head of the Planning Commission Montek Singh Ahluwalia could also be a favourite for the post, as he enjoys his proximity to Manmohan Singh, along with being a distinguished economist himself.