Prime Minister Manmohan Singh sought to soothe worries about the economy on Friday, telling parliament that the crashing value of the rupee was part of a needed adjustment that would make Asia's third-largest economy more competitive.
The speech was the veteran economist's first substantial comment to parliament since the rupee suffered its steepest ever monthly fall in recent weeks, bringing back memories of a 1991 balance of payments crisis that made Singh famous.
Reading from a written statement, the prime minister promised his government would reduce the "unsustainably large" current account deficit undermining the currency.
"Clearly we need to reduce our appetite for gold, economise the use of petroleum products and take steps to increase our imports," he said.
But
he said that a weaker currency was the natural outcome of several years
of high inflation, and although the rupee had overshot in the foreign
exchange market its decline would bring some economic benefits.Click NEXT to read PM's views on economy...
Photographs: Reuters