BJP cautions against complacency on global financial crisis
10 Oct 2008, 2030 Hrs

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New Delhi, Oct 10 The UPA Government should not be complacent on the global financial crisis, BJP spokesman Prakash Javadkar said on Friday.

Addressing a press conference in the capital, Javadekar said the increase in inflation, slow growth rate in the agriculture sector and downfall in industrial production were clear indications of a homebound crisis.

"The BJP demands that the UPA Government should carry out a sector wise reality check to avoid an embarrassment that would significantly impact the future of millions within the country. India is not only witnessing a global crisis but has to also face its own set of challenges. The index of industrial production has come down from 12.9 percent in September 2007 to a abysmally low 1.3 percent this year," Javadkar said.

"The inflation rate is still hovering around 12 percent. The services sector is also bound to face the crunch in the coming months. The agriculture sector is also not achieving more than three percent growth. The BJP demands that the government should make immediate decisions after conducting sector wise reality check. UPA government should stop living its own created make believe world," he added.

He also warned that capital flight out of the country has already crossed the figure of US 12 billion dollars. FII outages are impacting the Indian market adversely. The Indian markets are down by one percent for every one billion dollars flight of capital.

Despite the cut in the CRR, the credit crunch is still clearly visible. Oil companies, industries and business houses are not getting the release of their granted and approved finances.

The call money rates have zoomed. Banks have practically stopped new lending. The news from real estate sector is also not at all encouraging and people are predicting an Indian prime crisis to unfold. The government must be vigilant and must be seen as taking real decisions in coming days to avoid the pains in store, " Javadkar said. (ANI)